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Welcome back to another episode
of the Startup Therapy podcast.
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This is Ryan Rutan, joined
as always by my friend,
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the founder and CEO of
Startups.com, Will Schroeder.
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Will, as founders, we spend
years and years climbing out
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of startup mode, the chaos, the
ramen, the will payroll clear.
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Yeah.
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You finally get to the top.
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You know what you sell, you
know who you compete with,
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you know how you get paid,
and then somebody or something
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walks over and hits the reset
button, and all of a sudden
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it's, "Hop in the family
truckster, kids. We're going
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back to startup land." And
that's where every established
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company's sitting right now.
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AI didn't- Yeah … knock on
the door, it kicked it in.
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Yep, yep.
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And it took moats that we
spent decades digging and
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filled them in with dirt
over a freaking weekend.
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Yep.
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So today on Startup Therapy,
every assumption you made about
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your business just expired.
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Yep.
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Your org chart is now a museum
exhibit, and the only people
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who survive this are the ones
who are willing to run naked
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into the abyss one more time.
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But the good news is
we've done this before.
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Yeah.
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And that uniform always fits.
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Yep.
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The bad news is so
is your competition.
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Yep.
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And they have no
payroll to protect.
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I'm Ryan, that's Will, or maybe
that's Will- … depending on
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where you're watching this, and
surprise, we're a startup again.
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We're a startup again,
whether we wanna be or not.
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And so like- Exactly … that's
the most interesting part
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about this, is that the
world changed so fast.
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So fast.
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It hit the reset button so
fast for so many people.
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You know, we've got a, a very
broad range of people as far as
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their businesses that listen to
this podcast and, and we're very
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thankful for, for all of them.
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But, you know, of course, a
pretty good concentration of
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folks that are in tech and
who build software companies,
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et cetera, and all of them,
'cause we talked to all of
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them, are like, "Huh, well,
that's interesting. You mean
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what I spent," like you said,
"like a decade building is
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a prompt now? Cool." Yeah.
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Or if you're in any content
business whatsoever-
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Didn't see that coming
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yeah, didn't see that coming.
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And look, I mean, some folks
are in a fortunate position
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where, like this, you know, new
generation of AI helps them.
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But I'm gonna argue that
it imperils far more
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people than it's helping.
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I think it helps, like, 1%
of people at the expense-
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Yeah … of 99% of people.
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And, and so it forces all of
these instantiated businesses
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really of all sizes to restart.
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And here's what's crazy
about… You know, this isn't
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like one of those case, like
when the internet came and
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you just had to, like, you
had a different form factor.
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This is like every single
aspect of what it means
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to build and operate a
company has been reset.
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And so- Yep … all of a
sudden, size, which used to be
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a virtue, is a liability, right?
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Huge.
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Damn.
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Huge liability.
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Right?
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Which sounds- Huge liability
… a lot like where startups
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start to come in, right?
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And products that we could
always rely on because we were
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the only people that had the
capital to build it, or- Yep
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… we'd, you know, been around in
the marketplace long enough,
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all of a sudden it's like,
yeah, not that important, right?
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You know, damn.
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Right.
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Yeah.
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Right?
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And it wasn't one little
fundamental shift, right?
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It was three at the
same time, right?
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Mm-hmm.
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AI walked in and flipped
all three switches off
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in the conference room.
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Cost to build went
to zero, right?
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If you had software content
product that took real effort,
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real money, real time- Yeah
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that effort is now a
weekend hackathon, right?
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Bananas.
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The cost of staff and
systems collapsed, right?
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Having enough revenue
to fund a big team used
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to be an advantage.
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Yeah.
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Now that headcount is
the damn anchor, right?
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And the boat next to
you doesn't have one.
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That's the real issue, right?
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Okay, so- There's somebody
just speeding past you
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where we're like, "Stroke.
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Stroke.
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Where the hell are
they going," right?
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And now the last one, I think
this is one of the ones that's
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incredible and, and I think
you and I are enjoying this
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thing right now, which is that
everything can now be built.
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Un- unbelievable.
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The stuff that we wouldn't
even dare to think of even
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six months ago, we were
like, "Wouldn't it be cool?
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But no, we can't do that." Yeah,
of course we can't do that.
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That's gone, right?
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Now it's all buildable by
almost anyone at almost zero
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cost and basically overnight.
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Yes.
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Everything has changed.
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And, and honestly, like I, I'm
sure you probably feel the same
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way, this just feels like the
visible part of the iceberg.
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Like there's a whole
lot more to come.
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Which is a perfect setup
because I think at one point,
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let's use startups.com.
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Startups.com has been around-
Sure … for 15 years.
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We're a very
well-instantiated company.
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We've got a bunch of products
that have been in the market.
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To our credit, we're
pretty, uh, diversified
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across, you know- Yep
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revenue lines and
income lines, et cetera.
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But everything we do is
based on one of two things.
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We either built software or
information that we sold.
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Yep.
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And now nearly all of it can
either be, and this applies
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to everybody, not us, but uh,
can be built overnight, right?
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Yep.
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Or now you don't need us
to gate that information.
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Right.
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You literally just
ask Claude, right?
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Or ask GPT- Yep … or
ask whatever.
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Like, you know, the, they
may not give you the right
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answer, but you don't need us.
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You're welcome for
training that, right?
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Yeah.
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Like we, we had a lot to
do with those answers.
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Yeah.
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You're welcome, Claude.
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But here's what's interesting.
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I think initially, and I'll,
I'll speak from personal
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experience- If we rewind back
a year or two years, which
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isn't that long ago- Yeah … I
think our initial reaction
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to all of this was something
more akin to y- how do we
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protect ourselves, right?
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Mm-hmm.
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You know, these new things
are happening, and how do we
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take what we currently do- Yep
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and protect it?
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Which is a, a, a logical-
Yep … you know, response.
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But I think at some point-
Makes the move … and we
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have a unique purview, and I,
I don't wanna overlook this.
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See, most businesses,
their business isn't
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talking to thousands of
other startups, right?
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Right.
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All day long, all the time.
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Whereas that actually
is our business.
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Yes.
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So we're watching disruption
happen across every single
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plane all freaking day.
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Yeah.
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So, like, in other words,
like, the, the siren song
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of how things are changing
is blaring on our speakers
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because of who we literally
s- work with every day.
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Every time someone sends me a
pitch deck to look at and says,
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"Hey, w- you're disrupting
this space," my first thought
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isn't just their pitch deck,
it's, "I wonder what the
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guy who's getting disrupted
right now is thinking?"
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Yeah, yeah.
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My father-in-law, uh, ran a law
firm for a long time, and he
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was a, a successful attorney.
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Uh, he retired a
couple years ago.
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And I talked to him about this,
and I said, "Man, did you get
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out at the right time," right?
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Yeah.
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Like, right before this
whole thing was a problem
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because you practicing law
is about to be a prompt.
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And I don't mean it in a
derogatory way- No … or
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dis- you know, take away
from what he's saying.
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It's, that's even a, an issue.
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That's, it's even on the table.
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Right.
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Right?
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Like- Yep … dude, you made
it 50 years without that even
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being on, on the table, right?
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Yeah.
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And now overnight.
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So I, I think about him.
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I think about folks like
that who are being disrupted.
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Yeah.
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And I think every time I see
all of these people all day
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long, Ryan, that are disrupting
it, I'm thinking there's
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s- there's 10 people on the
other side of that disruption.
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Yeah.
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And, and all the people
that work for them.
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That's a problem.
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Yeah.
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What's crazy though, man,
like I'm gonna push back on
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disruption just a little bit.
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And I, I- Mm-hmm … I'm
mincing words with a really
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particular purpose here because
in a lot of cases you're not
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even getting disrupted, you're
just getting speed run, right?
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They're not actually
doing anything different
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than what you're doing.
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They're just doing it faster-
Yeah … with a much lower
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cost infrastructure and
a lot less bulk, right?
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Right.
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It took us 15 years to build
the castle and one weekend to
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find out that the drawbridge
was just a decoration, right?
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Why?
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Because everybody
else is just running.
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We're like- Yeah … "But the
castle's over here." They're
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like, "Yeah, but the promised
land's that way," right?
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Yeah, yeah, yeah.
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Shit.
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We've got, uh, spears
and shields, and somebody
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on the other side's- Yes
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g- got a musket, right?
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Yeah.
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So, here's how it would…
Uh, if we say s- stop and say,
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"What just happened," right?
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"What the hell just
happened?" Yeah.
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Let's put it in
three containers.
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This is kind of
where I'm seeing it.
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The first y- you just
mentioned a moment ago.
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The cost to do kind of
everything, not just build- Yep
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but operate- Yep … went
to damn near zero.
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Now, a lot of people-
Yeah … push back on that,
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and they'll say, "No, it didn't
really." Like, yes, a couple
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things went, you know, lower.
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Da, da, da.
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Let me put it this way.
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If they haven't
yet, they will be.
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Yeah.
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H- here's a different
way to think about it.
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If there's a cost lingering
out there that hasn't been
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optimized, AI'd, whatever,
it means that there's 50
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companies thinking about how
to do it because that's- Yeah
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the only morsel of ta-
of, uh, on the table
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that's left for them.
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They're just twiddling their
thumbs waiting for Fable
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to come back, like, "We've
got this. We've got this."
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So the first is with the
cost going to zero, that's a
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huge problem because I don't
think- Yeah … enough people
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understand how much things being
expensive allowed the center
247
00:08:29,738 --> 00:08:31,957
to hold when it comes to- Yeah
248
00:08:32,047 --> 00:08:32,597
any business.
249
00:08:32,698 --> 00:08:35,337
The castle and moat analog is a
really interesting one because
250
00:08:35,347 --> 00:08:37,107
that was the way it worked.
251
00:08:37,188 --> 00:08:38,157
That's the way we
thought it worked.
252
00:08:38,157 --> 00:08:40,518
And because of the high cost,
because of all of the, you
253
00:08:40,518 --> 00:08:43,007
know, the time complexity,
all that stuff, the basic goal
254
00:08:43,007 --> 00:08:47,038
was to build something big
enough that would function
255
00:08:47,038 --> 00:08:49,908
and serve enough people It
costs enough to build it.
256
00:08:49,908 --> 00:08:51,448
It'd be hard for other
people to build it, and
257
00:08:51,448 --> 00:08:52,908
then just try to stay there.
258
00:08:53,458 --> 00:08:56,368
The point was to just try to
then maintain status quo so
259
00:08:56,368 --> 00:08:58,968
you keep making money for year
after year after year, and that
260
00:08:58,968 --> 00:09:00,928
worked for a long time, right?
261
00:09:00,928 --> 00:09:02,517
But all of a sudden,
that's gone, right?
262
00:09:02,517 --> 00:09:02,727
Yeah.
263
00:09:02,818 --> 00:09:04,838
And what you start to realize
was that y- you know, your
264
00:09:04,838 --> 00:09:06,147
moat was never the code.
265
00:09:06,148 --> 00:09:06,898
It wasn't the product.
266
00:09:06,898 --> 00:09:07,448
It wasn't the team.
267
00:09:07,728 --> 00:09:10,068
It was the time and money
it took to write that
268
00:09:10,068 --> 00:09:11,738
code, to build that team,
to do all those things.
269
00:09:11,767 --> 00:09:12,037
Yep.
270
00:09:12,037 --> 00:09:13,808
AI just made those
damn near free.
271
00:09:14,007 --> 00:09:14,378
Which is a big problem.
272
00:09:14,378 --> 00:09:14,538
Right?
273
00:09:14,538 --> 00:09:17,268
Which means most companies
never actually had a moat.
274
00:09:17,847 --> 00:09:19,108
They had a head start.
275
00:09:19,118 --> 00:09:19,138
Yeah.
276
00:09:19,157 --> 00:09:23,208
And head starts expire, and
they are expiring at record
277
00:09:23,208 --> 00:09:26,428
rate, faster than strawberries
from Meijer at this point, man.
278
00:09:26,687 --> 00:09:28,907
Things are just going
bad left and right.
279
00:09:29,777 --> 00:09:31,987
That's a problem because,
uh, it's twofold.
280
00:09:31,988 --> 00:09:34,998
One, because our time and
investment, that moat that
281
00:09:34,998 --> 00:09:37,447
we had built, all of a
sudden doesn't exist in the
282
00:09:37,448 --> 00:09:38,117
same way that it used to.
283
00:09:38,128 --> 00:09:38,368
Yep.
284
00:09:38,797 --> 00:09:41,277
But more importantly, that's
also because the other people
285
00:09:41,277 --> 00:09:43,787
that are c- up and coming
can actually build a better
286
00:09:43,788 --> 00:09:46,337
product in almost no time.
287
00:09:46,347 --> 00:09:46,377
Yes.
288
00:09:46,738 --> 00:09:47,647
In almost no time.
289
00:09:47,648 --> 00:09:47,668
Yeah.
290
00:09:47,687 --> 00:09:48,687
Now, they still
have to market it.
291
00:09:48,698 --> 00:09:50,007
They still have to do
customer acquisition, et
292
00:09:50,007 --> 00:09:50,837
cetera, which isn't a given.
293
00:09:50,837 --> 00:09:50,987
Sure.
294
00:09:51,527 --> 00:09:54,717
But, but they can get to the
parity at a product level,
295
00:09:54,727 --> 00:09:56,927
if not much faster in many c-
or much bigger- Right … in
296
00:09:56,927 --> 00:10:00,908
many cases at very little
cost, which is dangerous.
297
00:10:01,117 --> 00:10:01,668
Here's why.
298
00:10:02,107 --> 00:10:05,027
It means we can now have
30 competitors overnight,
299
00:10:05,507 --> 00:10:07,097
but here's what's-
Yeah … even more dangerous.
300
00:10:07,357 --> 00:10:10,718
It means those competitors
kinda don't have to worry about
301
00:10:10,718 --> 00:10:13,007
going out of business 'cause
it's just two dudes in a room.
302
00:10:13,677 --> 00:10:13,857
Right.
303
00:10:13,918 --> 00:10:14,188
Right?
304
00:10:14,488 --> 00:10:15,998
That's the dangerous part.
305
00:10:15,998 --> 00:10:18,347
It used to be- Right … that
when you had a lot of
306
00:10:18,348 --> 00:10:20,817
competitors, you kinda
just starved them out.
307
00:10:21,198 --> 00:10:23,138
You kept running- Yep … and
eventually, your- Literally,
308
00:10:23,138 --> 00:10:24,567
it was castle warfare.
309
00:10:24,577 --> 00:10:26,447
You just- Yeah … you
just rode out the siege.
310
00:10:26,488 --> 00:10:27,387
That's all you had to do.
311
00:10:27,427 --> 00:10:28,138
You do, right?
312
00:10:28,198 --> 00:10:32,117
In our lifetime at Startups.com,
countless competitors, right?
313
00:10:32,117 --> 00:10:32,137
Yeah, yeah.
314
00:10:32,177 --> 00:10:33,997
Across all the businesses
that we've had, et cetera.
315
00:10:34,247 --> 00:10:34,467
Oh, my God.
316
00:10:34,467 --> 00:10:36,137
I mean, so much that we don't
even pay attention anymore.
317
00:10:36,137 --> 00:10:36,987
Go back to the fundable days.
318
00:10:36,997 --> 00:10:39,738
How many, how many crowdfunding
for equity platforms, uh,
319
00:10:39,787 --> 00:10:42,657
appeared overnight and then
disappeared nearly as quickly?
320
00:10:42,997 --> 00:10:46,297
Once a month, like clockwork,
a, a friend of mine, another
321
00:10:46,297 --> 00:10:47,607
founder, was like, "Oh,
my God, did you hear about
322
00:10:47,607 --> 00:10:49,977
this company in your space?"
I'm like, "I didn't, and I
323
00:10:50,007 --> 00:10:50,937
actually just don't care."
324
00:10:50,988 --> 00:10:51,868
Yeah, don't care.
325
00:10:51,868 --> 00:10:53,857
And, and they can never
believe that I'm not all,
326
00:10:53,857 --> 00:10:54,807
like, wired up about it.
327
00:10:54,977 --> 00:10:55,147
Yeah.
328
00:10:55,147 --> 00:10:58,747
And it's because I've seen so
many people come and go so many
329
00:10:58,747 --> 00:11:02,657
times- Yeah … that I realize
that, like, it's only a problem
330
00:11:02,917 --> 00:11:04,167
when it becomes a problem.
331
00:11:04,318 --> 00:11:05,808
Like, like, in other words-
Yeah … if, if they happen
332
00:11:05,808 --> 00:11:08,267
to hit that threshold and
they're, I'm somehow losing
333
00:11:08,267 --> 00:11:11,737
lots of business, maybe, but
until then, it's not a problem.
334
00:11:12,467 --> 00:11:15,837
And I say that to say
because I knew they
335
00:11:15,837 --> 00:11:16,788
would go out of business.
336
00:11:16,917 --> 00:11:19,177
I knew that if I just
held on longer than they
337
00:11:19,178 --> 00:11:21,498
could, that eventually they
wouldn't be around, and that
338
00:11:21,538 --> 00:11:23,187
largely held true, right?
339
00:11:23,297 --> 00:11:23,537
Yeah.
340
00:11:23,757 --> 00:11:24,437
Here's a good example.
341
00:11:24,917 --> 00:11:27,107
How many competitors did
we have at Zirtual.com, our
342
00:11:27,107 --> 00:11:28,207
virtual assistant business?
343
00:11:28,547 --> 00:11:29,067
All of them.
344
00:11:29,417 --> 00:11:33,312
Actually, yeah, like literally
If you get down into who is
345
00:11:33,312 --> 00:11:35,842
actually a competitor of that
company, tens of thousands,
346
00:11:35,842 --> 00:11:38,762
because there were these lots of
little agencies or big agencies-
347
00:11:38,762 --> 00:11:40,832
Yep … there were individual
people, like millions if you
348
00:11:40,842 --> 00:11:41,612
count the individuals, right?
349
00:11:41,612 --> 00:11:41,812
Right.
350
00:11:41,812 --> 00:11:43,932
So yes, lots and
lots of competition.
351
00:11:44,072 --> 00:11:46,202
And we started as the biggest,
'cause we bought the company,
352
00:11:46,342 --> 00:11:48,152
and we ended as the biggest
when we sold the company.
353
00:11:48,152 --> 00:11:48,341
Yep.
354
00:11:48,411 --> 00:11:48,711
Right?
355
00:11:48,761 --> 00:11:51,591
Like, not because we're
anything special, because
356
00:11:51,591 --> 00:11:54,772
it's really hard to
unseat incumbents, right?
357
00:11:54,851 --> 00:11:55,121
Yep.
358
00:11:55,271 --> 00:11:58,512
Now, all that said, all
that said, the difference
359
00:11:58,552 --> 00:12:00,721
in this case is these
cockroaches never die.
360
00:12:01,421 --> 00:12:01,721
Right.
361
00:12:01,771 --> 00:12:04,881
Like, these cockroaches are
gonna be around forever nibbling
362
00:12:04,881 --> 00:12:06,141
away at our market share.
363
00:12:06,182 --> 00:12:06,462
Yep.
364
00:12:06,502 --> 00:12:06,822
Right?
365
00:12:06,932 --> 00:12:07,851
And that becomes a problem.
366
00:12:07,851 --> 00:12:09,911
So that, that's one of three
things that just happened.
367
00:12:10,601 --> 00:12:12,751
People can get to market
fast, they can get to market
368
00:12:12,752 --> 00:12:16,442
meaningfully, and they
can afford to not go away.
369
00:12:16,841 --> 00:12:17,301
Big problem.
370
00:12:17,491 --> 00:12:18,901
That's actually the
biggest one, right?
371
00:12:18,921 --> 00:12:20,901
The, the afford to not go
away is the biggest problem.
372
00:12:20,901 --> 00:12:21,772
We talk about this all the time.
373
00:12:21,782 --> 00:12:25,141
Like, if you can just stay
around long enough, you start
374
00:12:25,142 --> 00:12:27,171
to solve so many of your
little problems and then some
375
00:12:27,171 --> 00:12:29,081
of your big problems, then
you become a viable company.
376
00:12:29,081 --> 00:12:29,592
And, and- Oh
377
00:12:29,622 --> 00:12:32,121
it's just got really
easy now to stick around
378
00:12:32,122 --> 00:12:33,932
for a long, long time.
379
00:12:34,061 --> 00:12:34,711
That's what I'm saying.
380
00:12:34,761 --> 00:12:37,151
And if you're funded as well,
again, assuming you spend
381
00:12:37,151 --> 00:12:38,931
your money right, you can-
Yeah … really stick around
382
00:12:38,931 --> 00:12:39,771
for a long time, right?
383
00:12:39,812 --> 00:12:40,331
Yeah, yeah.
384
00:12:40,331 --> 00:12:45,071
The second thing is because the
cost of staff and systems has
385
00:12:45,081 --> 00:12:48,352
plummeted, you're now competing
with people that don't have
386
00:12:48,361 --> 00:12:50,301
your ballast, your dead weight.
387
00:12:50,302 --> 00:12:50,572
Right.
388
00:12:50,851 --> 00:12:51,141
Right?
389
00:12:51,141 --> 00:12:51,311
Yep.
390
00:12:51,361 --> 00:12:53,801
And so, you know, if you're
a company right now, a
391
00:12:53,802 --> 00:12:56,191
software company, that's
got 100 people in it-
392
00:12:56,351 --> 00:12:57,481
Yeah … which isn't massive.
393
00:12:57,482 --> 00:12:58,141
I mean, it's a good size.
394
00:12:58,202 --> 00:12:58,412
No.
395
00:12:58,501 --> 00:12:59,101
I'm not, I'm not knocking it.
396
00:12:59,151 --> 00:13:01,881
But it's a lot more payroll
tax than two people.
397
00:13:02,141 --> 00:13:03,201
Right.
398
00:13:03,391 --> 00:13:06,391
And it's like, wait a minute,
what if, crazy to think,
399
00:13:06,622 --> 00:13:09,161
in today's terms with the
tools that are available
400
00:13:09,162 --> 00:13:12,741
and the pace of everything,
I need 10, maybe 20- Yeah
401
00:13:12,741 --> 00:13:13,691
at t- tops, right?
402
00:13:13,772 --> 00:13:14,032
Yep.
403
00:13:14,372 --> 00:13:17,861
Think of how dangerous those
other 80 people are to the
404
00:13:17,861 --> 00:13:19,311
future of your company, right?
405
00:13:19,361 --> 00:13:19,541
Yeah.
406
00:13:19,561 --> 00:13:20,671
That's scary as hell.
407
00:13:20,872 --> 00:13:22,541
You know, we'll, we'll
talk about that some more.
408
00:13:23,281 --> 00:13:25,501
But the last part that
I think people are just
409
00:13:25,531 --> 00:13:30,011
coming to terms with is that
everything can be built now.
410
00:13:30,571 --> 00:13:33,121
For example, in the past, y- we
talked about this a moment ago.
411
00:13:33,721 --> 00:13:36,942
In the past when we sat
down and we scoped out our
412
00:13:36,942 --> 00:13:40,791
roadmaps, et cetera, they
were always fundamentally
413
00:13:40,791 --> 00:13:42,431
delimited by man hours.
414
00:13:42,441 --> 00:13:42,471
Yep.
415
00:13:42,901 --> 00:13:43,101
Right?
416
00:13:43,101 --> 00:13:43,229
Yep.
417
00:13:43,229 --> 00:13:45,161
I mean, and we had a good
sense for how many man hours
418
00:13:45,162 --> 00:13:47,371
could produce a product,
and the timeline, and
419
00:13:47,371 --> 00:13:48,242
everything else like that.
420
00:13:48,882 --> 00:13:52,511
And so we could scope what
our product could be, the
421
00:13:52,511 --> 00:13:54,952
limits of what it could
be, et cetera, in very
422
00:13:54,962 --> 00:13:57,121
verifiable terms because we…
423
00:13:57,121 --> 00:13:59,091
Of course it can't be bigger
than this, 'cause that would
424
00:13:59,091 --> 00:14:01,561
take- Right … 200 people
that we, we don't have, right?
425
00:14:01,912 --> 00:14:05,321
So we would conceive of
things fairly constrained.
426
00:14:05,621 --> 00:14:06,061
Yeah.
427
00:14:06,221 --> 00:14:06,621
Always.
428
00:14:06,671 --> 00:14:08,691
Like, y- we almost always
started with the constraints.
429
00:14:08,691 --> 00:14:10,701
Like, what are the
resources we have available?
430
00:14:10,701 --> 00:14:11,861
What can we do within that?
431
00:14:12,272 --> 00:14:13,951
And it was extremely
constraining.
432
00:14:13,951 --> 00:14:15,081
It wasn't a little constraining.
433
00:14:15,091 --> 00:14:15,111
Yeah.
434
00:14:15,121 --> 00:14:17,311
Now that those limitations
are off, you're not just
435
00:14:17,341 --> 00:14:19,641
competing with what you did,
you're competing with all the
436
00:14:19,641 --> 00:14:21,701
things you didn't think you
could do five minutes ago.
437
00:14:21,901 --> 00:14:23,011
That's what I'm s- Right?
438
00:14:23,291 --> 00:14:26,061
This one's really
fascinating to me.
439
00:14:26,451 --> 00:14:26,571
Yeah.
440
00:14:26,651 --> 00:14:28,882
Because I don't think that
there's enough people,
441
00:14:29,041 --> 00:14:33,036
particularly incumbents-
that can do this restart.
442
00:14:33,356 --> 00:14:36,536
Like mentally, to be able to
say- Yeah … "Shit, it doesn't
443
00:14:36,536 --> 00:14:39,075
matter what we did before or
anything like that." It doesn't.
444
00:14:39,075 --> 00:14:41,355
"This is new world, and
we're gonna build with
445
00:14:41,486 --> 00:14:42,645
new world in mind." Yeah.
446
00:14:42,896 --> 00:14:47,825
By the way, in many cases, w-
that new world will deliberately
447
00:14:47,825 --> 00:14:49,805
destroy what pays our bills.
448
00:14:49,955 --> 00:14:50,445
See Google.
449
00:14:50,455 --> 00:14:50,735
Yep.
450
00:14:51,205 --> 00:14:53,535
You gotta start tearing apart
the castle and building wagons.
451
00:14:53,535 --> 00:14:56,205
You gotta start killing the
sacred cows and, and eating
452
00:14:56,205 --> 00:14:58,365
them 'cause it's time to go
push… Like, we gotta run.
453
00:14:58,386 --> 00:14:59,925
Like, it's, it's time
to go at this point.
454
00:15:00,045 --> 00:15:01,865
Building a tree house while
you're chopping down the tree.
455
00:15:02,515 --> 00:15:03,025
Exactly.
456
00:15:03,035 --> 00:15:03,065
Right?
457
00:15:03,455 --> 00:15:03,475
Yeah.
458
00:15:03,485 --> 00:15:06,406
And I think, again, I'm
using Google as a perfect
459
00:15:06,406 --> 00:15:07,565
example of this, right?
460
00:15:07,575 --> 00:15:10,495
Such a smart, innovative
company, obviously incredibly
461
00:15:10,496 --> 00:15:14,026
well-funded, and they're
like, "Okay, AI is making
462
00:15:14,026 --> 00:15:18,016
search go away, but search
pays 70% of our bills."
463
00:15:18,035 --> 00:15:19,736
And they aren't
small bills, right?
464
00:15:19,976 --> 00:15:20,136
No.
465
00:15:20,156 --> 00:15:23,875
"So now we have to innovate
on search, um, on AI that
466
00:15:23,885 --> 00:15:27,755
is gonna displace search and
still pay our bills. Like,
467
00:15:27,755 --> 00:15:29,795
it's, it's the opposite-
Yeah … of what we wanna do."
468
00:15:29,976 --> 00:15:31,215
Now, Google's a smart company.
469
00:15:31,215 --> 00:15:32,085
They'll figure it out.
470
00:15:32,325 --> 00:15:36,235
But think of how many
companies are in that quandary,
471
00:15:36,656 --> 00:15:37,346
where they're like- Yeah
472
00:15:37,455 --> 00:15:39,905
"Yeah, but the next thing
involves people not needing
473
00:15:39,906 --> 00:15:42,626
what we have." Take our virtual
assistant business, right?
474
00:15:43,185 --> 00:15:45,665
If we still owned our virtual
assistant business, the obvious
475
00:15:45,666 --> 00:15:48,016
thing would be, "Well, well
let's move all of the virtual
476
00:15:48,016 --> 00:15:50,405
assistants to be virtual,
to be AI based," right?
477
00:15:50,475 --> 00:15:50,545
Yeah.
478
00:15:50,995 --> 00:15:53,985
Okay, but we literally
get paid to, for people.
479
00:15:54,545 --> 00:15:54,815
Yeah.
480
00:15:54,825 --> 00:15:55,025
Right?
481
00:15:55,086 --> 00:15:56,995
Like, if we don't have
people anymore- And
482
00:15:56,995 --> 00:15:57,455
we pay lots of people.
483
00:15:57,455 --> 00:15:57,905
Yeah, yeah.
484
00:15:57,906 --> 00:15:59,355
I mean, let's over- look,
there, there'll be hundreds and
485
00:15:59,355 --> 00:16:01,075
hundreds of people on payroll.
486
00:16:01,505 --> 00:16:04,742
That's actually our
product It goes back to my
487
00:16:04,742 --> 00:16:06,482
father-in-law, you know, in law.
488
00:16:06,922 --> 00:16:09,082
"Hey, let's build an AI that
does all the law for you."
489
00:16:09,562 --> 00:16:11,262
Yeah, we get paid hourly, man.
490
00:16:11,661 --> 00:16:12,641
Mm-hmm.
491
00:16:12,771 --> 00:16:15,192
That's, like, doesn't…
That's the opposite of
492
00:16:15,192 --> 00:16:16,201
what works well for us.
493
00:16:16,391 --> 00:16:16,982
That's the thing.
494
00:16:17,041 --> 00:16:20,172
Like, the existing models
don't work within the new
495
00:16:20,201 --> 00:16:21,731
technologies at all, right?
496
00:16:21,742 --> 00:16:21,762
Mm-hmm.
497
00:16:21,762 --> 00:16:23,891
They're actually, in
some cases, directly
498
00:16:23,911 --> 00:16:25,062
competitive, to your point.
499
00:16:25,072 --> 00:16:28,651
Like, if all of a sudden, you
know, wow, we can deliver, uh,
500
00:16:28,681 --> 00:16:32,802
legal advice at, at 10X the
rate in terms of speed, cool.
501
00:16:33,371 --> 00:16:35,367
You don't get to charge
any more for that, right?
502
00:16:35,367 --> 00:16:36,362
R- right, right.
503
00:16:36,362 --> 00:16:38,552
And so now you just cut
your billable rate by a, a
504
00:16:38,552 --> 00:16:40,192
magnitude of, of 90%, right?
505
00:16:40,201 --> 00:16:42,011
You're down, like, to
10%, because that's
506
00:16:42,011 --> 00:16:42,661
how long it takes now.
507
00:16:43,331 --> 00:16:44,711
Now- So not exactly a
great outcome for them.
508
00:16:45,031 --> 00:16:48,572
Now imagine, right, you
and I are walking into our
509
00:16:48,572 --> 00:16:50,411
staff meeting, our executive
staff meeting, right?
510
00:16:50,721 --> 00:16:50,891
Yeah.
511
00:16:50,891 --> 00:16:53,422
And let's say we're a 100-person
software company, and the
512
00:16:53,422 --> 00:16:55,991
first thing we're saying is
that, "Hey, we gotta start
513
00:16:56,021 --> 00:16:57,511
thinking like a startup."
And everybody high-fives.
514
00:16:57,581 --> 00:16:58,629
"Oh, yeah. Absolutely."
Yeah, yeah.
515
00:16:58,629 --> 00:16:59,661
Back to the startup, back
to the ground, whatever.
516
00:16:59,931 --> 00:17:00,041
Like, right?
517
00:17:00,041 --> 00:17:00,961
Yeah, flexible.
518
00:17:00,971 --> 00:17:01,781
Y- yeah, yeah, yeah.
519
00:17:01,791 --> 00:17:02,111
Agile.
520
00:17:02,761 --> 00:17:03,051
Right.
521
00:17:03,061 --> 00:17:04,401
Let's go scrum, guys.
522
00:17:04,451 --> 00:17:04,731
Okay.
523
00:17:05,061 --> 00:17:09,591
But our first order of business
is, and now how many jobs that
524
00:17:09,592 --> 00:17:12,911
are being done here are still
gonna be relevant that we still
525
00:17:12,912 --> 00:17:16,021
need to staff up for, and what
do we need to, to swap out?
526
00:17:16,342 --> 00:17:16,532
Yeah.
527
00:17:16,562 --> 00:17:18,051
That's where the conversation-
It's- … starts to get a
528
00:17:18,051 --> 00:17:19,281
little bit different, right?
529
00:17:19,321 --> 00:17:21,521
This is the part nobody wants
to really talk about, right?
530
00:17:21,521 --> 00:17:23,161
Th- th- this is- A huge
piece of just- Yeah … what
531
00:17:23,162 --> 00:17:26,652
made each of us valuable
five minutes ago just got
532
00:17:26,652 --> 00:17:28,061
replaced by a chat prompt.
533
00:17:28,581 --> 00:17:31,271
You know, something that's
really funny about everything
534
00:17:31,272 --> 00:17:34,731
we talk about here is
that none of it is new.
535
00:17:34,991 --> 00:17:37,532
Everything you're dealing
with right now has been done a
536
00:17:37,641 --> 00:17:41,381
thousand times before you, which
means the answer already exists.
537
00:17:41,391 --> 00:17:43,321
You may just not know
it, but that's okay.
538
00:17:43,632 --> 00:17:45,452
That's kind of what
we're here to do.
539
00:17:45,482 --> 00:17:48,121
We talk about this stuff on
the show, but we actually
540
00:17:48,121 --> 00:17:52,191
solve these problems all day
long at groups.startups.com.
541
00:17:52,331 --> 00:17:55,571
So if any of this sounds
familiar, stop guessing
542
00:17:55,641 --> 00:17:56,611
about what to do.
543
00:17:56,861 --> 00:18:00,011
Let us just give you the answers
to the test and be done with it.
544
00:18:00,482 --> 00:18:02,971
Let's unpack this one, because
this is the human element
545
00:18:03,191 --> 00:18:05,101
which makes this so difficult.
546
00:18:05,131 --> 00:18:07,341
I would argue for a second
that there's probably a lot
547
00:18:07,342 --> 00:18:11,191
of other aspects of this pivot
that an existing instantiated
548
00:18:11,221 --> 00:18:13,052
company can kind of figure out.
549
00:18:13,482 --> 00:18:17,082
This one has no, no winner,
because this just involves
550
00:18:17,092 --> 00:18:20,531
people that worked so hard
to build this thing no longer
551
00:18:20,541 --> 00:18:23,851
having a place, but even
worse- Yeah Essentially,
552
00:18:23,851 --> 00:18:26,422
in some cases, asking them
to dig their own grave.
553
00:18:26,432 --> 00:18:26,452
Yeah.
554
00:18:26,992 --> 00:18:29,812
Let's say that you've got a
20-person customer support,
555
00:18:29,812 --> 00:18:32,162
customer success team, and
you say, "Hey, we gotta
556
00:18:32,162 --> 00:18:34,631
think like a startup. With
AI, we could probably do the
557
00:18:34,631 --> 00:18:37,011
same thing we're doing with
20 with two people." Yeah.
558
00:18:37,411 --> 00:18:38,051
Okay.
559
00:18:38,361 --> 00:18:39,481
Write the playbook for us.
560
00:18:39,532 --> 00:18:42,621
Like- Yeah … I guess
we start with a shovel.
561
00:18:42,621 --> 00:18:44,942
We dig the hole about six
foot deep, then I jump in it.
562
00:18:44,961 --> 00:18:47,351
You pelt me with rocks, and
it's g- day over, right?
563
00:18:47,361 --> 00:18:47,851
Like, yeah.
564
00:18:48,081 --> 00:18:50,481
Like, how does that
conversation go?
565
00:18:50,571 --> 00:18:54,061
And I say this with reverence,
the ultimate protected
566
00:18:54,061 --> 00:18:56,152
class, the engineers, right?
567
00:18:56,152 --> 00:18:56,182
Yeah.
568
00:18:56,182 --> 00:19:01,232
The engineers have enjoyed
a period of magical
569
00:19:01,391 --> 00:19:02,141
unpredictability, right?
570
00:19:02,161 --> 00:19:04,412
Like- Yep … if you've been
an engineer in the software
571
00:19:04,412 --> 00:19:07,921
business in the last 30
years, life has been pretty
572
00:19:07,921 --> 00:19:09,991
good as far as job security.
573
00:19:10,531 --> 00:19:13,782
And now we go to what's always
the highest line item, which
574
00:19:13,782 --> 00:19:16,391
are the engineers, which
see job security, right?
575
00:19:16,841 --> 00:19:18,281
And we say, "Hey,
good news, guys.
576
00:19:18,471 --> 00:19:21,671
We're gonna build 10X more with
10X less people." If you're
577
00:19:21,671 --> 00:19:25,531
the engineers, and your job
historically has essentially
578
00:19:25,531 --> 00:19:27,941
been the gatekeeper of what
gets built, right, which is
579
00:19:27,941 --> 00:19:32,422
a very powerful role, and the
CMO who, you know, who, who
580
00:19:32,441 --> 00:19:35,522
engages you on the marketing
side and the CEO, the director
581
00:19:35,532 --> 00:19:37,951
of product, you know, all these
different roles, have always
582
00:19:38,081 --> 00:19:43,302
basically had to rely on you
and your team to be able to
583
00:19:43,302 --> 00:19:46,941
get stuff done, whether it was,
you know, uh, product designs,
584
00:19:46,941 --> 00:19:50,792
whether, whatever, and all of a
sudden you're not as important
585
00:19:50,792 --> 00:19:51,991
as you were five minutes ago.
586
00:19:52,321 --> 00:19:52,731
Mm-hmm.
587
00:19:52,751 --> 00:19:53,651
Here, here's where
I'm going with this.
588
00:19:54,111 --> 00:19:56,701
Your first thought isn't
going to be, "You're right.
589
00:19:56,711 --> 00:19:59,291
Burn it all down. Let me get
rid of, uh, two-thirds of my
590
00:19:59,291 --> 00:20:01,981
staff and push all decisioning
to somebody but me." Yeah.
591
00:20:02,202 --> 00:20:03,551
No one is going to say that.
592
00:20:03,551 --> 00:20:04,711
No one wants to do that, no.
593
00:20:04,711 --> 00:20:05,161
Right?
594
00:20:05,301 --> 00:20:07,541
And so again, this is what
this episode's all about.
595
00:20:08,191 --> 00:20:11,751
As leadership, you've
gotta reset all these folks
596
00:20:12,062 --> 00:20:13,502
who don't wanna be reset.
597
00:20:14,126 --> 00:20:15,976
That's, I think that's gonna be
one of the most challenging part
598
00:20:15,976 --> 00:20:19,916
of this because, look, we built
these companies on a giant stack
599
00:20:19,926 --> 00:20:22,229
of assumptions, that these are
the roles we need- Yep … this
600
00:20:22,229 --> 00:20:24,336
is what they produce, this
is what they cost, and all
601
00:20:24,336 --> 00:20:26,335
of that was settled, right?
602
00:20:26,345 --> 00:20:28,995
Now, all of a sudden, not only
is that not settled, it's pretty
603
00:20:28,995 --> 00:20:29,966
obvious that it's different.
604
00:20:29,966 --> 00:20:31,735
And let's go back to the
competitive angle of this.
605
00:20:32,015 --> 00:20:34,405
Because even if you're like,
"Look, we'll just try to
606
00:20:34,405 --> 00:20:36,175
make this work. We'll just
keep chugging along," you're
607
00:20:36,245 --> 00:20:38,436
doing it with 100, they
come along and they're doing
608
00:20:38,436 --> 00:20:40,436
it with 10, maybe fewer.
609
00:20:40,835 --> 00:20:42,266
That's a big problem,
and there's nothing
610
00:20:42,266 --> 00:20:43,295
cool about that, right?
611
00:20:43,296 --> 00:20:44,656
Because it does, it
means cutting back.
612
00:20:44,665 --> 00:20:46,765
It, it means good people,
generally good people,
613
00:20:46,765 --> 00:20:49,686
get to- Yeah … get this
place for reasons that have
614
00:20:49,686 --> 00:20:52,306
nothing to do with whether
they were good or not.
615
00:20:52,435 --> 00:20:53,046
Not their fault.
616
00:20:53,065 --> 00:20:54,926
I mean, literally not
their fault, right?
617
00:20:55,036 --> 00:20:55,606
It's brutal.
618
00:20:55,885 --> 00:20:56,895
And- But it doesn't
change the math.
619
00:20:57,536 --> 00:20:57,833
That's the problem.
620
00:20:57,833 --> 00:20:58,415
It doesn't change the math.
621
00:20:58,576 --> 00:20:59,015
That's the problem.
622
00:20:59,015 --> 00:21:00,935
To survive, you have to think
like a startup that launched
623
00:21:00,935 --> 00:21:03,605
this morning, and because
that's exactly who you're
624
00:21:03,606 --> 00:21:04,675
gonna be competing with, right?
625
00:21:04,675 --> 00:21:06,855
There's somebody else that
started yesterday who's now
626
00:21:06,865 --> 00:21:11,835
nearly where you are after 15
years, because they can just do
627
00:21:12,056 --> 00:21:14,036
everything that you did in such
a short period of time under
628
00:21:14,036 --> 00:21:15,835
such little cost constraint.
629
00:21:16,165 --> 00:21:18,165
We have to rethink the
org chart completely.
630
00:21:18,435 --> 00:21:19,785
Let me do a little
side quest here.
631
00:21:20,096 --> 00:21:22,815
We did an episode years
and years a- ago where we
632
00:21:22,815 --> 00:21:25,176
talked about when small
companies think about
633
00:21:25,176 --> 00:21:26,355
competing with big companies.
634
00:21:26,365 --> 00:21:27,965
Mm. And we talked about
it like Luke Skywalker
635
00:21:28,026 --> 00:21:28,676
taking on the Death Star.
636
00:21:28,696 --> 00:21:28,966
Yeah.
637
00:21:29,015 --> 00:21:29,925
You finding that, that- Yep
638
00:21:29,925 --> 00:21:32,035
that one, you know, chink
in the armor, so to speak.
639
00:21:32,346 --> 00:21:34,195
I- in that episode, what we
said is, you know, we don't
640
00:21:34,196 --> 00:21:36,906
fear big competitors because we
know they're slow and whatever.
641
00:21:36,906 --> 00:21:38,855
Like, when that Death Star
finally turns and that
642
00:21:38,855 --> 00:21:40,895
thing fires up and- Yeah,
yeah … uh, launches on,
643
00:21:40,925 --> 00:21:42,546
on Alderaan, uh, game over.
644
00:21:42,556 --> 00:21:42,586
Right.
645
00:21:42,675 --> 00:21:43,735
But until then- Yeah
646
00:21:43,955 --> 00:21:45,215
they are very vulnerable.
647
00:21:45,645 --> 00:21:47,495
I want, for those folks that
are listening that aren't part
648
00:21:47,495 --> 00:21:49,925
of big organizations but are
about to compete with them, I
649
00:21:49,925 --> 00:21:52,895
want you to think about what
we're saying very differently.
650
00:21:53,385 --> 00:21:55,855
I want you to think when
you go after big co-
651
00:21:56,634 --> 00:21:58,914
This is the problem that
they have to deal with.
652
00:21:58,954 --> 00:22:01,863
This is the big, uh,
storeroom they have for all
653
00:22:01,863 --> 00:22:04,843
of their, their firearms
that if you're similar to,
654
00:22:04,843 --> 00:22:05,833
similar to the Death Star.
655
00:22:05,963 --> 00:22:07,823
If you just- Yeah … if
you just land on that, this
656
00:22:07,823 --> 00:22:08,863
whole thing is gonna explode.
657
00:22:09,283 --> 00:22:13,363
If I'm about to compete with
Big Co., and I know that in
658
00:22:13,404 --> 00:22:17,083
order for them to do what I do,
they have to be a fraction of
659
00:22:17,083 --> 00:22:20,404
the size because I can sell,
right, I can sell stuff for
660
00:22:20,404 --> 00:22:23,244
a dollar that they used to
have to sell for $100, right?
661
00:22:23,244 --> 00:22:25,543
So in order for them to- Yeah
… to stay competitive, they
662
00:22:25,543 --> 00:22:26,803
can't have all those people.
663
00:22:27,173 --> 00:22:30,384
So I know when I'm competing
with them, that the
664
00:22:30,393 --> 00:22:32,924
consternation that it's
gonna take, that their first
665
00:22:33,014 --> 00:22:35,993
reaction is gonna be to try
to protect all those people
666
00:22:35,994 --> 00:22:38,293
and preserve- Yeah … that
capital structure, right?
667
00:22:38,293 --> 00:22:38,563
Yep.
668
00:22:38,733 --> 00:22:39,643
That's the big problem, right?
669
00:22:39,643 --> 00:22:42,313
'Cause the competitor's
doing it with 10, not because
670
00:22:42,313 --> 00:22:43,533
they're smarter than you.
671
00:22:43,703 --> 00:22:46,333
They just started after the
reset, so they never hired the
672
00:22:46,333 --> 00:22:47,904
other 90 in the first place.
673
00:22:47,913 --> 00:22:47,933
Yeah.
674
00:22:47,953 --> 00:22:49,513
They don't have to
solve that problem.
675
00:22:49,713 --> 00:22:49,973
Correct.
676
00:22:50,133 --> 00:22:51,473
They just have to solve the
problem of how do we build it.
677
00:22:51,573 --> 00:22:53,683
We have to solve the problem
of how do we build and
678
00:22:53,683 --> 00:22:55,223
how do we keep everybody
whole while we're doing it.
679
00:22:55,453 --> 00:22:57,674
So my side quest there
was just letting folks
680
00:22:57,674 --> 00:22:59,403
know that, you know, kinda
getting to this game that
681
00:22:59,413 --> 00:23:00,863
are these nimble competitors.
682
00:23:01,133 --> 00:23:03,763
What you're up against
isn't just, hey, this
683
00:23:03,763 --> 00:23:04,743
is a bigger company.
684
00:23:05,053 --> 00:23:08,574
You are up against a company
that internally has a
685
00:23:08,623 --> 00:23:10,433
time bomb ticking, right?
686
00:23:10,574 --> 00:23:13,103
I will say this 'cause a
lot of people haven't seen
687
00:23:13,104 --> 00:23:15,233
the in- inner workings of,
of enough big companies.
688
00:23:15,714 --> 00:23:18,113
When a company gets up to a
certain size, and there's no
689
00:23:18,123 --> 00:23:20,614
magic number, but it could be
100 people, it could be 500
690
00:23:20,633 --> 00:23:23,984
people, et cetera, the focus of
all the people that work there
691
00:23:24,163 --> 00:23:25,643
no longer becomes external.
692
00:23:25,953 --> 00:23:27,833
It becomes entirely internal.
693
00:23:27,843 --> 00:23:28,053
Yeah, yeah.
694
00:23:28,053 --> 00:23:30,813
Your success within the
company has everything to do
695
00:23:30,813 --> 00:23:33,714
with what you do within that
company, the politics and
696
00:23:33,714 --> 00:23:34,683
everything else like that.
697
00:23:35,153 --> 00:23:37,463
The external success, like
how well the product does
698
00:23:37,464 --> 00:23:41,614
in the market, kinda becomes
nobody's personal benefit.
699
00:23:41,843 --> 00:23:44,763
But the internal, how well
your company did, how well you
700
00:23:45,034 --> 00:23:48,033
promoted people, et cetera,
becomes how you make more money.
701
00:23:48,293 --> 00:23:52,176
My point is- For startups,
the small ones, they can just
702
00:23:52,176 --> 00:23:54,186
focus on how many customers
are we selling, like how does
703
00:23:54,186 --> 00:23:55,265
this benefit us directly?
704
00:23:55,636 --> 00:23:55,656
Yeah.
705
00:23:55,846 --> 00:23:59,136
But the people you're competing
with, the actual humans behind
706
00:23:59,146 --> 00:24:02,336
big logo, are just worried about
their own frigging jobs, man.
707
00:24:02,485 --> 00:24:05,206
They're just worried about
updating their LinkedIn, right?
708
00:24:05,206 --> 00:24:06,866
And making sure that they,
they, they don't lose
709
00:24:06,866 --> 00:24:07,585
pay on their mortgage.
710
00:24:07,586 --> 00:24:11,255
So a lot of very vulnerable
big logos right now.
711
00:24:11,646 --> 00:24:12,805
Um, and it's- Super … I
think it's important
712
00:24:12,806 --> 00:24:13,436
to understand that.
713
00:24:13,796 --> 00:24:14,206
Super.
714
00:24:14,206 --> 00:24:16,805
And, and, like, I think the
stress this time is a bit
715
00:24:16,806 --> 00:24:19,125
different and, and it, it's
pervasive through these
716
00:24:19,126 --> 00:24:22,355
organizations because it's not
just about like, "Oh, something
717
00:24:22,355 --> 00:24:25,425
is happening to us that's going
to make us have to change,
718
00:24:25,705 --> 00:24:27,285
and we're gonna have to lay
people off, or we're gonna
719
00:24:27,285 --> 00:24:28,805
have to fire people, we're
gonna have to change things."
720
00:24:29,346 --> 00:24:31,135
In the past, there were
always jobs for those
721
00:24:31,135 --> 00:24:32,275
people to go to, right?
722
00:24:32,275 --> 00:24:32,286
Yeah.
723
00:24:32,286 --> 00:24:34,745
Now you're saying like, "The
job doesn't exist at our company
724
00:24:34,745 --> 00:24:38,445
anymore, nor the 15 other big
competitors you would've gone to
725
00:24:38,475 --> 00:24:41,546
historically to fill that role,
to fill that need in your own
726
00:24:41,546 --> 00:24:44,330
life." And so I think the stress
and the pressure and the angst
727
00:24:44,330 --> 00:24:46,925
and the anxiety is significantly
higher this time around.
728
00:24:47,085 --> 00:24:47,465
It is.
729
00:24:47,465 --> 00:24:50,095
And, and look, I genuinely
believe, and, and time will
730
00:24:50,095 --> 00:24:52,345
tell, but I genuinely believe
that, that this will also
731
00:24:52,345 --> 00:24:54,125
create more new companies,
which will then become-
732
00:24:54,125 --> 00:24:55,115
100% … you know, another.
733
00:24:55,296 --> 00:24:56,105
But they ain't there yet.
734
00:24:56,146 --> 00:24:57,906
That's a, an opportunity
for later, but it's
735
00:24:57,906 --> 00:24:58,795
a problem for now.
736
00:24:59,046 --> 00:25:01,936
So what we end up having to
do as, as, as founders, as
737
00:25:01,955 --> 00:25:05,535
leadership, is a hard reset,
a straight up hard reset.
738
00:25:05,555 --> 00:25:09,576
And I think most leadership,
most founders, most CEOs,
739
00:25:09,756 --> 00:25:11,516
haven't gotten the message yet.
740
00:25:11,686 --> 00:25:13,685
They know the storm's
coming, they can feel it.
741
00:25:13,705 --> 00:25:13,725
Yeah.
742
00:25:13,726 --> 00:25:14,396
They're smart.
743
00:25:14,705 --> 00:25:17,285
Ryan, I don't think
they actually appreciate
744
00:25:17,506 --> 00:25:19,435
how much things have to
change, 'cause it's hard.
745
00:25:19,686 --> 00:25:20,405
I think it's hard.
746
00:25:20,405 --> 00:25:20,415
Mm-hmm.
747
00:25:20,415 --> 00:25:22,645
I think, I think they
maybe do understand it.
748
00:25:22,716 --> 00:25:24,646
They've intellectualized
it, they know, and they
749
00:25:24,646 --> 00:25:25,565
just can't do it yet.
750
00:25:25,585 --> 00:25:27,775
And, and it's this…
This is gonna be harsh.
751
00:25:27,775 --> 00:25:29,655
I'm gonna, I'll try to say it as
kindly as I can, but it's harsh.
752
00:25:29,756 --> 00:25:32,385
It's sense of loyalty to
the old org chart, right?
753
00:25:32,385 --> 00:25:32,396
Yeah.
754
00:25:32,396 --> 00:25:34,405
And unfortunately- Yeah
… loyalty to the old org chart
755
00:25:34,415 --> 00:25:36,815
is not actually loyalty to
your people, because at some
756
00:25:36,815 --> 00:25:39,585
point, it's actually the
fastest way to lose all of them.
757
00:25:39,725 --> 00:25:39,835
Yeah.
758
00:25:39,835 --> 00:25:41,925
Because a company that doesn't
adapt- It sucks … doesn't
759
00:25:41,925 --> 00:25:42,725
get to keep anybody.
760
00:25:42,885 --> 00:25:43,315
It sucks.
761
00:25:43,315 --> 00:25:43,575
Right?
762
00:25:43,575 --> 00:25:46,575
And, and the hard reset is sort
of the humane option compared
763
00:25:46,576 --> 00:25:48,185
to just going under, right?
764
00:25:48,186 --> 00:25:50,015
Because that's the other
choice, and it sucks.
765
00:25:50,025 --> 00:25:50,045
Yeah.
766
00:25:50,245 --> 00:25:53,635
There is no fun way
around this, right?
767
00:25:53,675 --> 00:25:56,595
And we're conditioned to
exactly the opposite, right?
768
00:25:56,595 --> 00:25:58,635
We used to fight over head
count in budget meetings like
769
00:25:58,635 --> 00:26:00,006
it was a status symbol, right?
770
00:26:00,155 --> 00:26:02,245
We were trying to get as many
people as we could, right?
771
00:26:02,245 --> 00:26:03,795
It turns out we were
collecting liabilities
772
00:26:03,795 --> 00:26:04,845
and calling them trophies.
773
00:26:04,875 --> 00:26:04,895
Yeah.
774
00:26:04,905 --> 00:26:09,615
In this world, doesn't change
what has to just happen now,
775
00:26:09,735 --> 00:26:11,245
and it's awful and it's hard.
776
00:26:11,506 --> 00:26:13,485
Part of that hard reset, of
course, is people, right?
777
00:26:13,485 --> 00:26:15,655
And w- you know, we've- Yep
… we've definitely covered that.
778
00:26:15,896 --> 00:26:17,905
Let's talk about the other
side of it, which is the,
779
00:26:18,135 --> 00:26:21,705
not what's changed, what's
broken, what's lost, but how
780
00:26:21,705 --> 00:26:26,015
do we rethink who our business
even is in this new era?
781
00:26:26,015 --> 00:26:26,125
Yeah.
782
00:26:26,336 --> 00:26:27,405
Okay, so let's go this way.
783
00:26:27,735 --> 00:26:31,096
If we said five minutes ago that
our business was virtual.com
784
00:26:31,226 --> 00:26:33,195
and we're a virtual assistant
business, we have hundreds
785
00:26:33,196 --> 00:26:35,265
of virtual assistants that
people can pay for monthly.
786
00:26:35,545 --> 00:26:38,975
But the hard pivot is no
more virtual assistants.
787
00:26:39,146 --> 00:26:41,985
Now, again- Yeah … we covered
the people aspect of it,
788
00:26:41,985 --> 00:26:43,655
so, so we're not overlooking
the people aspect of it.
789
00:26:43,665 --> 00:26:46,666
We're saying, but even if you
had some way to contend with
790
00:26:46,666 --> 00:26:51,080
that- You still, the biggest
part of this reset is you
791
00:26:51,080 --> 00:26:54,550
have to stop thinking about
how you used to make money.
792
00:26:54,560 --> 00:26:54,580
Yeah.
793
00:26:54,870 --> 00:26:56,320
It doesn't matter anymore.
794
00:26:56,750 --> 00:26:57,110
Right.
795
00:26:57,240 --> 00:26:58,750
And that's the hard part.
796
00:26:59,090 --> 00:27:00,470
Everyone's trying to
protect their stuff.
797
00:27:00,680 --> 00:27:02,119
They're trying to say-
Yeah … "Hey, let's just not
798
00:27:02,120 --> 00:27:05,329
make this change." And it's
like, dude, the people that
799
00:27:05,329 --> 00:27:08,319
are gonna win aren't the people
that protected their stuff.
800
00:27:08,740 --> 00:27:09,090
No, man.
801
00:27:09,090 --> 00:27:11,549
It's the people that set
it on fire, I hate to even
802
00:27:11,550 --> 00:27:13,999
say it, literally what it's
called, and restart it.
803
00:27:14,609 --> 00:27:16,190
Which is why we're saying
you gotta start again.
804
00:27:16,599 --> 00:27:19,399
I think we're seeing a lot of
people in a position now where
805
00:27:19,409 --> 00:27:21,910
they're protecting their current
business model, and that's in
806
00:27:21,910 --> 00:27:24,999
direct conflict- Right … with
the business model that would
807
00:27:24,999 --> 00:27:26,269
win in the next five years.
808
00:27:26,319 --> 00:27:26,589
Right.
809
00:27:26,619 --> 00:27:27,879
The model loses, right?
810
00:27:27,920 --> 00:27:29,519
The, if that's the game
you're playing right now,
811
00:27:29,519 --> 00:27:30,499
you're already losing.
812
00:27:30,499 --> 00:27:32,810
The only choice is whether you
cannibalize yourself on purpose
813
00:27:32,810 --> 00:27:35,859
or let someone with nothing to
protect do it for you, right?
814
00:27:35,869 --> 00:27:35,949
Yes.
815
00:27:36,119 --> 00:27:37,979
You've either gotta eat
some of yourself or somebody
816
00:27:37,979 --> 00:27:38,690
else is gonna do it.
817
00:27:38,919 --> 00:27:39,590
Here's a great test.
818
00:27:39,590 --> 00:27:40,770
One way or the other.
819
00:27:40,770 --> 00:27:44,549
Ask yourself as a founder,
if you were entering your
820
00:27:44,549 --> 00:27:47,159
business, your industry, you
know, whatever you're in right
821
00:27:47,159 --> 00:27:50,539
now, would your business plan
look to build exactly the
822
00:27:50,540 --> 00:27:51,989
product that you have right now?
823
00:27:52,290 --> 00:27:55,019
Like- Yeah … for most
people, I can't fathom that
824
00:27:55,029 --> 00:27:56,310
that would be true, right?
825
00:27:56,319 --> 00:27:58,289
So- Yeah … if, if you
were saying, "Hey, I'm gonna
826
00:27:58,290 --> 00:28:01,169
go back to startup mode,"
you would build something
827
00:28:01,190 --> 00:28:03,799
so geometrically different
than what you have now.
828
00:28:03,799 --> 00:28:03,964
Yes.
829
00:28:03,964 --> 00:28:06,389
And the only reason you're
building what you have the way
830
00:28:06,389 --> 00:28:10,349
you are now is because of the
liability of what you have now.
831
00:28:10,349 --> 00:28:10,870
Right.
832
00:28:10,870 --> 00:28:14,354
And what sucks is- Five
seconds ago, that was your
833
00:28:14,354 --> 00:28:15,414
greatest accomplishment.
834
00:28:15,544 --> 00:28:17,324
The concept- Yeah … that
it was a liability?
835
00:28:17,934 --> 00:28:19,034
Like, I'll give you an example.
836
00:28:19,454 --> 00:28:23,064
I don't know him well, but
Dharmesh Shah, the, the founder
837
00:28:23,064 --> 00:28:25,224
of HubSpot- Yeah … and I
have had a good relationship,
838
00:28:25,243 --> 00:28:27,574
you know, just for a long
time, uh, for s- long s-
839
00:28:27,724 --> 00:28:29,313
since before, uh, HubSpot.
840
00:28:29,313 --> 00:28:33,234
And, and a few weeks
ago, Dharmesh p- posted
841
00:28:33,234 --> 00:28:35,093
something on LinkedIn that
I just, I haven't been able
842
00:28:35,093 --> 00:28:35,884
to stop thinking about.
843
00:28:36,294 --> 00:28:39,133
He posts something to the effect
of, I don't… You can look
844
00:28:39,134 --> 00:28:41,703
it up, but, uh, uh, the effect
of, "Hey, I just bought a bunch
845
00:28:41,703 --> 00:28:44,854
of HubSpot stock," because
the, the stock took a header.
846
00:28:44,854 --> 00:28:45,203
Yeah, yeah.
847
00:28:45,363 --> 00:28:47,844
Because the analysts are all
saying that, you know, our days
848
00:28:47,844 --> 00:28:49,633
are numbered, and, you know,
SaaS is getting blown up, and
849
00:28:49,633 --> 00:28:50,544
everything else like that.
850
00:28:50,553 --> 00:28:50,573
Yeah.
851
00:28:51,033 --> 00:28:53,903
And he's saying, "But I don't
believe that hype. Yes, I'm well
852
00:28:53,904 --> 00:28:54,973
aware…" He's such a smart guy.
853
00:28:55,343 --> 00:28:57,953
"I'm well aware of what's
happening, but here's why
854
00:28:57,963 --> 00:28:59,843
I think HubSpot is in a
phenomenal position to
855
00:28:59,843 --> 00:29:00,633
do something about it."
856
00:29:01,163 --> 00:29:02,023
Here's why I bring this up.
857
00:29:02,654 --> 00:29:06,284
I wonder if Dharmesh, behind
closed doors, if I were to say,
858
00:29:06,334 --> 00:29:09,794
"Dharmesh, if you were Dharmesh
from 20 years ago and you were
859
00:29:09,794 --> 00:29:12,303
starting over- Yeah … would
you build exactly what you
860
00:29:12,303 --> 00:29:15,443
have now?" I can't imagine,
an amazing amount of respect
861
00:29:15,443 --> 00:29:17,184
for him, he would say yes.
862
00:29:17,373 --> 00:29:19,324
Maybe, but I mean, I,
again, I can't put words
863
00:29:19,324 --> 00:29:22,443
in his mouth, but I use him
specifically for a few reasons.
864
00:29:22,674 --> 00:29:25,693
One, because what he's
built has been phenomenal.
865
00:29:25,763 --> 00:29:27,663
I mean, an absolute- Yeah
… juggernaut at every level.
866
00:29:27,703 --> 00:29:27,873
Yep.
867
00:29:28,144 --> 00:29:30,823
Second, he's so smart, right?
868
00:29:30,823 --> 00:29:32,574
I mean, just like-
Right … just absolute.
869
00:29:33,013 --> 00:29:35,433
And third, he's in
front of the curve.
870
00:29:35,663 --> 00:29:37,343
Like, like, this guy
isn't like some guy who's
871
00:29:37,343 --> 00:29:38,944
like, you know, we, we
should put out to pasture.
872
00:29:39,113 --> 00:29:40,333
Like, dude is on his grind.
873
00:29:40,833 --> 00:29:41,744
Uh, he's at the front of it.
874
00:29:42,073 --> 00:29:44,643
And I wonder when he sits,
you know, staring at the
875
00:29:44,643 --> 00:29:47,944
ceiling at night, if he's
like, "Shit, I'm in trouble,
876
00:29:47,944 --> 00:29:52,056
man." Like, I- What I built,
which made me a billionaire,
877
00:29:52,486 --> 00:29:55,776
is now a massive anchor, and
I'm smart enough to know what
878
00:29:55,776 --> 00:29:57,396
to build next, and I can't.
879
00:29:57,406 --> 00:29:57,426
Yeah.
880
00:29:57,736 --> 00:29:58,276
I can't.
881
00:29:58,346 --> 00:29:58,616
Yeah.
882
00:29:58,706 --> 00:30:00,296
And that's the
interesting thing, right?
883
00:30:00,296 --> 00:30:02,566
And I, I started wondering
about that actually when he
884
00:30:02,566 --> 00:30:04,755
started building some of these
little side quest projects.
885
00:30:04,766 --> 00:30:05,025
Yeah, yep.
886
00:30:05,286 --> 00:30:05,526
Right?
887
00:30:05,556 --> 00:30:07,766
Like the, the little agentic
company and some other stuff,
888
00:30:07,775 --> 00:30:12,735
and it was like, to me, those
looked exactly like, this is
889
00:30:12,736 --> 00:30:15,375
what we should be building,
but we can't because we're too
890
00:30:15,375 --> 00:30:17,365
big inside HubSpot, so we're
gonna go build them out here.
891
00:30:17,365 --> 00:30:18,055
I'm gonna go do it over here.
892
00:30:18,056 --> 00:30:18,705
I'm gonna go do it over there.
893
00:30:18,896 --> 00:30:20,946
To me, that was exactly
what those looked like.
894
00:30:21,175 --> 00:30:22,096
This is what I'm saying.
895
00:30:22,096 --> 00:30:25,616
This is, is a perfect
example of someone who can
896
00:30:25,625 --> 00:30:28,265
see what's next- Yep … but
their hands are tied.
897
00:30:28,295 --> 00:30:30,926
Their economics don't
allow them to do it.
898
00:30:31,276 --> 00:30:34,095
Now- Yep … again, I have
complete faith in Dharmesh.
899
00:30:34,125 --> 00:30:37,166
I'm sure he's gonna find a way
to do something, even if it
900
00:30:37,166 --> 00:30:39,206
means building HubSpot 2, right?
901
00:30:39,206 --> 00:30:40,715
And that becomes the new
thing, and- Yeah … and
902
00:30:40,715 --> 00:30:43,196
people, you know, float out
of HubSpot 1 to HubSpot 2.
903
00:30:43,445 --> 00:30:45,546
I'm confident someone like
him can figure it out.
904
00:30:45,785 --> 00:30:50,365
But I use him because even
he has this, this problem,
905
00:30:50,495 --> 00:30:51,585
and dude's smart as hell.
906
00:30:51,725 --> 00:30:53,736
The problem isn't about
how smart the founder is.
907
00:30:53,736 --> 00:30:55,355
I'm using him
because he's so good.
908
00:30:55,866 --> 00:30:58,235
The- Yeah … problem is
with the dead weight that
909
00:30:58,245 --> 00:31:00,576
he's carrying- Yeah, yeah
… which, my point of this,
910
00:31:00,836 --> 00:31:02,526
was his greatest success.
911
00:31:03,035 --> 00:31:03,535
Bananas.
912
00:31:03,945 --> 00:31:04,245
Yeah.
913
00:31:04,265 --> 00:31:06,436
The very thing that you set
out to build, the very thing
914
00:31:06,436 --> 00:31:10,965
that you use to measure success
becomes a massive liability
915
00:31:11,025 --> 00:31:12,885
in, in this new world.
916
00:31:12,936 --> 00:31:14,586
Yeah, it's absolutely wild.
917
00:31:14,896 --> 00:31:17,005
It's a lot to just
intellectualize, right?
918
00:31:17,006 --> 00:31:18,505
Forget about actually
doing something about it.
919
00:31:18,506 --> 00:31:20,785
You gotta spend a fair
amount of time just going,
920
00:31:21,025 --> 00:31:23,005
"What the fuck?" Right?
921
00:31:23,006 --> 00:31:24,775
Okay, not, not even what
am I gonna do about this.
922
00:31:24,875 --> 00:31:24,955
Yeah.
923
00:31:24,955 --> 00:31:27,015
Just like, what just happened?
924
00:31:27,025 --> 00:31:28,085
Like, huh?
925
00:31:28,195 --> 00:31:28,515
Huh?
926
00:31:28,565 --> 00:31:29,055
Yeah, right.
927
00:31:29,055 --> 00:31:31,145
How can they just change
the rules that fast?
928
00:31:31,165 --> 00:31:32,936
Like, don't, do, do they knock?
929
00:31:32,936 --> 00:31:33,985
Do they send a notice?
930
00:31:33,985 --> 00:31:35,495
Do we get, like,
30 days, something?
931
00:31:35,616 --> 00:31:35,986
Nope.
932
00:31:36,175 --> 00:31:40,535
And what's interesting in his
case is that he is the guy that
933
00:31:40,535 --> 00:31:41,945
does the disrupting, right?
934
00:31:41,975 --> 00:31:44,505
I mean, HubSpot was a juggernaut
at every possible level.
935
00:31:44,506 --> 00:31:45,745
You know, w- w-
uh, we're a client.
936
00:31:46,045 --> 00:31:49,785
But we look at that bill every
month, and it's a big ass bill.
937
00:31:49,795 --> 00:31:49,815
Yeah.
938
00:31:50,195 --> 00:31:50,855
And we're like,
939
00:31:52,875 --> 00:31:53,145
"Hmm.
940
00:31:53,195 --> 00:31:55,615
How do we make that a, a not
big ass bill?" So next HubSpot
941
00:31:55,855 --> 00:31:59,445
that comes along, when Dharmesh
2 comes along, right, and he's
942
00:31:59,445 --> 00:32:01,975
like, "Hey, I can do that, the
same thing for 10% of the cost,"
943
00:32:02,705 --> 00:32:05,676
gonna be hard to say no, and
that's what he's dealing with.
944
00:32:05,676 --> 00:32:07,065
So now, here's where
it gets interesting.
945
00:32:07,436 --> 00:32:10,465
All of these founders, all
of us, have to go to these
946
00:32:10,805 --> 00:32:12,765
bold new frontiers, right?
947
00:32:12,765 --> 00:32:12,775
Yeah.
948
00:32:12,775 --> 00:32:16,515
Like, we basically have to
say, as painful as it is,
949
00:32:16,915 --> 00:32:19,955
we're being forced to restart
whether we like it or not,
950
00:32:20,535 --> 00:32:23,715
and we have to build our plan,
our strategy at this point.
951
00:32:24,440 --> 00:32:29,310
has to exist around ideas we've
never implemented before or were
952
00:32:29,310 --> 00:32:32,770
afraid to- Yep … around a cost
structure that never existed
953
00:32:32,779 --> 00:32:35,920
before, around, in some cases,
a market that doesn't exist yet.
954
00:32:35,930 --> 00:32:35,950
Yeah.
955
00:32:35,980 --> 00:32:37,870
Because again, we're building
things at a new rate that
956
00:32:37,880 --> 00:32:40,480
haven't, hasn't been proven-
Yep … in a competitive
957
00:32:40,489 --> 00:32:42,709
market that we cannot predict.
958
00:32:43,129 --> 00:32:43,269
Right.
959
00:32:43,270 --> 00:32:43,879
Holy shit.
960
00:32:44,430 --> 00:32:46,080
You know who does
really well with that?
961
00:32:46,629 --> 00:32:47,119
Startups.
962
00:32:47,709 --> 00:32:48,019
Startups.
963
00:32:48,389 --> 00:32:50,189
Yeah, it's so funny, man, like-
Startups do really well with
964
00:32:50,199 --> 00:32:52,679
that … when we look at it now,
it's like, you know, startup
965
00:32:52,709 --> 00:32:55,089
us had hope and no idea, right?
966
00:32:55,270 --> 00:32:55,300
Yep.
967
00:32:55,359 --> 00:32:57,739
Current us has a track
record and a mortgage.
968
00:32:57,979 --> 00:32:58,179
Yeah.
969
00:32:58,180 --> 00:33:00,640
And I'm honestly not sure
that like, yeah, we don't
970
00:33:00,640 --> 00:33:02,620
look at that and go, "Oh man,
it'd be so nice to be back in
971
00:33:02,620 --> 00:33:03,460
that condition again," right?
972
00:33:03,460 --> 00:33:05,580
Like, you worked- Well- … so
hard to get out of it, and it's
973
00:33:05,580 --> 00:33:07,250
like, can we have that back now?
974
00:33:07,489 --> 00:33:09,610
Can I just go back to
having nothing but ideas?
975
00:33:09,610 --> 00:33:11,249
Because it'd be
perfect right now.
976
00:33:11,340 --> 00:33:12,629
But here's what
I'm fascinated by.
977
00:33:12,649 --> 00:33:15,219
And you know, we're all
forced to relive this journey
978
00:33:15,219 --> 00:33:16,029
whether we want to or not.
979
00:33:16,029 --> 00:33:16,569
You know what it'd be like?
980
00:33:16,889 --> 00:33:20,569
It's like if every single
person in life had to go back
981
00:33:20,569 --> 00:33:21,729
to freshman year of high school.
982
00:33:21,790 --> 00:33:23,490
Like, for some reason- Yeah
… there was some alternate
983
00:33:23,500 --> 00:33:26,679
universe where the only way
to survive were to like, take
984
00:33:26,680 --> 00:33:30,369
our old ancient asses and
drag us back to freshman year.
985
00:33:30,369 --> 00:33:33,000
We're getting pushed in lockers
or… Dude, I'm so ready.
986
00:33:33,000 --> 00:33:34,450
I don't fit in a
locker anymore, bro.
987
00:33:34,460 --> 00:33:34,660
Yeah.
988
00:33:34,750 --> 00:33:37,109
Like, you, you can't
stuff me in there.
989
00:33:37,150 --> 00:33:39,579
Even if you oiled me up first,
I won't fit in a locker.
990
00:33:39,629 --> 00:33:40,929
But here's why I
use that analogy.
991
00:33:41,129 --> 00:33:44,210
I use that analogy because the
difference would be we know
992
00:33:44,210 --> 00:33:45,789
what to expect this time, right?
993
00:33:45,789 --> 00:33:45,849
Yeah.
994
00:33:45,849 --> 00:33:47,829
When we did it the first time,
you know, when you were in high
995
00:33:47,830 --> 00:33:49,499
school for the first time, you
didn't know what to expect.
996
00:33:49,500 --> 00:33:51,759
Everything was bigger than- Yeah
… it really was and et cetera.
997
00:33:52,059 --> 00:33:53,039
Uh, similar with the startup.
998
00:33:53,119 --> 00:33:55,420
We went in, everything was
more consequential than we
999
00:33:55,420 --> 00:33:56,419
thought it would be, et cetera.
1000
00:33:56,879 --> 00:34:00,239
At least this time around,
when we go to do it again,
1001
00:34:00,489 --> 00:34:02,290
we kind of know how to
operate as a startup.
1002
00:34:02,430 --> 00:34:04,139
Now, it doesn't mean
we're gonna be successful.
1003
00:34:04,379 --> 00:34:08,480
It just means that massive
gap of lack of experience
1004
00:34:08,669 --> 00:34:09,380
isn't there anymore.
1005
00:34:09,380 --> 00:34:09,599
Yeah.
1006
00:34:09,939 --> 00:34:11,019
But you know who
it is there for?
1007
00:34:11,419 --> 00:34:12,139
Our competitors.
1008
00:34:12,610 --> 00:34:15,209
See, right, when at
Startups.com, when we restart,
1009
00:34:15,500 --> 00:34:17,129
right, and we become, you
know, a startup again,
1010
00:34:17,129 --> 00:34:20,039
even after 15 years, we're
competing with people who've
1011
00:34:20,040 --> 00:34:20,879
never done this before.
1012
00:34:20,919 --> 00:34:22,659
By and large- Yeah … people
who've never done this before.
1013
00:34:22,669 --> 00:34:23,530
Their freshman effort.
1014
00:34:23,979 --> 00:34:25,569
And it doesn't mean
they're not capable.
1015
00:34:25,959 --> 00:34:27,719
It just means we're as
capable as they are.
1016
00:34:27,720 --> 00:34:29,049
The difference is we know
what the fuck we're doing.
1017
00:34:29,889 --> 00:34:29,999
Yeah.
1018
00:34:29,999 --> 00:34:31,839
Like, we know exactly- We get
to, we get to go back to play
1019
00:34:31,839 --> 00:34:33,860
the level one dungeon, but
we get to bring all of our
1020
00:34:33,860 --> 00:34:34,930
experience points- Exactly
1021
00:34:34,930 --> 00:34:36,990
and all the awesome loot
that we gathered across
1022
00:34:36,990 --> 00:34:37,619
all those adventures.
1023
00:34:37,620 --> 00:34:40,520
Like, I'm bringing the level
52 flaming sword with me.
1024
00:34:41,570 --> 00:34:41,711
That's what I'm saying.
1025
00:34:41,711 --> 00:34:42,750
I don't give a
shit what you say.
1026
00:34:43,779 --> 00:34:44,379
Exactly.
1027
00:34:44,790 --> 00:34:46,869
And so this is where
it gets fascinating.
1028
00:34:47,120 --> 00:34:49,179
While we've got this forced
reset and it's painful and
1029
00:34:49,180 --> 00:34:51,899
it's awful, and again, we, we
covered that plenty, we also
1030
00:34:51,900 --> 00:34:56,329
have this new world where we
have this unique experience and
1031
00:34:56,329 --> 00:34:59,469
an opportunity, right, at this
incredible, you know, wealth
1032
00:34:59,469 --> 00:35:02,589
creation engine to be able to
navigate this thing and hack
1033
00:35:02,590 --> 00:35:05,070
and slash and, and kind of, you
know, rebuild ourselves- Yep
1034
00:35:05,079 --> 00:35:06,250
in this new version.
1035
00:35:06,669 --> 00:35:08,949
I think that's incredibly
exciting, right?
1036
00:35:09,159 --> 00:35:10,840
Right, you and I, believe
it or not, aren't the
1037
00:35:10,840 --> 00:35:13,280
youngest guys, but- Yeah.
1038
00:35:13,770 --> 00:35:14,300
Go on.
1039
00:35:14,490 --> 00:35:15,820
Tell me more about this.
1040
00:35:15,990 --> 00:35:17,870
I know, man, I got an
awful lot of fight in me.
1041
00:35:18,010 --> 00:35:20,730
I am- Yeah … ready
to reload, right?
1042
00:35:20,760 --> 00:35:22,910
I am ready to go back
to that dungeon again.
1043
00:35:23,220 --> 00:35:24,510
Well, dude, do you know why?
1044
00:35:24,560 --> 00:35:26,790
Because energy just got
taken off the table.
1045
00:35:27,030 --> 00:35:27,259
Mm-hmm.
1046
00:35:27,270 --> 00:35:30,530
Because you no longer have to
survive all of that brutal,
1047
00:35:30,530 --> 00:35:32,449
like, build-up to the point
where we can afford the team,
1048
00:35:32,449 --> 00:35:34,170
where we can afford the stuff,
where we can do the thing.
1049
00:35:34,170 --> 00:35:35,639
Like- Yep … that's all gone.
1050
00:35:36,060 --> 00:35:36,250
Yep.
1051
00:35:36,259 --> 00:35:41,450
You don't have to have that just
keep rowing and keep rowing and
1052
00:35:41,450 --> 00:35:45,570
keep rowing and f- hopefully we
finally clear the wave break.
1053
00:35:45,649 --> 00:35:46,450
We don't have to
do that anymore.
1054
00:35:46,480 --> 00:35:47,389
We don't need-
Yep … the energy.
1055
00:35:47,390 --> 00:35:49,269
We need the experience,
we need the knowledge, we
1056
00:35:49,270 --> 00:35:51,589
need the desire, of course,
and we've always had that.
1057
00:35:51,590 --> 00:35:54,389
And so, like, I think by
taking that level of grind
1058
00:35:54,390 --> 00:35:56,039
and energy, not that they're
not gonna be a grind, but
1059
00:35:56,039 --> 00:35:57,039
y- you get where I'm going.
1060
00:35:57,070 --> 00:35:57,600
Like- Yeah
1061
00:35:57,609 --> 00:36:00,949
some of that just absolute
shit uphill- Yeah … is gone.
1062
00:36:00,949 --> 00:36:03,190
That's why the competitors
are just already right here.
1063
00:36:03,329 --> 00:36:03,529
Yep.
1064
00:36:03,539 --> 00:36:05,949
But yeah, man, I… Look, we've
never been afraid of a fight.
1065
00:36:05,980 --> 00:36:06,609
We're founders.
1066
00:36:09,879 --> 00:36:10,081
This is what we signed up for.
1067
00:36:10,081 --> 00:36:10,810
And so- That's it … like,
it feels like it's about
1068
00:36:10,810 --> 00:36:11,809
to be a lot of fun.
1069
00:36:12,070 --> 00:36:14,339
And yeah, there's gonna be some
major challenges to navigate,
1070
00:36:14,340 --> 00:36:16,960
the people problems being
really the only one that I don't
1071
00:36:16,960 --> 00:36:18,309
have awesome solutions for.
1072
00:36:18,430 --> 00:36:18,700
Yeah.
1073
00:36:18,919 --> 00:36:21,600
The rest of it I feel like we've
got, and just gotta figure out
1074
00:36:21,600 --> 00:36:22,610
how to make the rest of it work.
1075
00:36:22,790 --> 00:36:24,729
But the good news is, and
this is what I want folks
1076
00:36:24,729 --> 00:36:27,420
to take away from this, the
good news is the people that
1077
00:36:27,420 --> 00:36:30,099
are gonna survive this little
apocalypse- Yep … are
1078
00:36:30,140 --> 00:36:31,279
founders, are startups.
1079
00:36:31,279 --> 00:36:31,519
Yeah.
1080
00:36:31,739 --> 00:36:32,009
Right?
1081
00:36:32,140 --> 00:36:32,920
Which guess what?
1082
00:36:32,949 --> 00:36:36,489
It just so happens that's
exactly what we are, right?
1083
00:36:36,489 --> 00:36:38,010
Like, we were-
Yeah … literally made
1084
00:36:38,019 --> 00:36:41,119
to do this exact job at
this exact moment in time.
1085
00:36:41,349 --> 00:36:44,539
Now we're being dusted off and,
and getting the, the equipment
1086
00:36:44,549 --> 00:36:46,910
put back on us and pushed out in
the field whether we like it or
1087
00:36:46,910 --> 00:36:49,510
not, but- I'm gonna regrow hair
just for this adventure, Will.
1088
00:36:51,142 --> 00:36:51,692
I could have mine.
1089
00:36:52,162 --> 00:36:55,912
But this is also our
moment to prove that we are
1090
00:36:55,912 --> 00:36:56,972
the founder that we are.
1091
00:36:57,022 --> 00:36:58,242
And again, we've proved it once.
1092
00:36:58,242 --> 00:36:59,962
There's no reason we
can't do it again.
1093
00:36:59,972 --> 00:36:59,992
Yeah.
1094
00:37:00,302 --> 00:37:03,152
I think for a lot of folks
right now, there's so much
1095
00:37:03,162 --> 00:37:04,982
fear about what's happening,
you know, w- with these
1096
00:37:04,982 --> 00:37:07,282
existing organizations,
and it's justified.
1097
00:37:07,602 --> 00:37:10,752
But I think the difference
is if we step back and we
1098
00:37:10,752 --> 00:37:14,012
rethink about who we are when
we attack this problem, and
1099
00:37:14,012 --> 00:37:16,771
we say, "Let's stop thinking
about it as an existing company
1100
00:37:16,772 --> 00:37:17,932
that has these liabilities.
1101
00:37:18,112 --> 00:37:20,362
Let's start thinking about
it as a brand-new company, a
1102
00:37:20,372 --> 00:37:24,021
fresh company that is exactly
tailor-made for this type of
1103
00:37:24,022 --> 00:37:26,791
thing, led by people who have
done this before," then we
1104
00:37:26,792 --> 00:37:27,902
turn into something different.
1105
00:37:28,132 --> 00:37:30,371
We don't turn into the
big, slow Death Star.
1106
00:37:30,522 --> 00:37:32,642
We turn into the TIE fighter…
Or, I'm sorry, the, the
1107
00:37:32,761 --> 00:37:35,861
X-wing fighter that can fly-
Careful there, dark side.
1108
00:37:35,871 --> 00:37:35,891
Yeah.
1109
00:37:36,371 --> 00:37:37,731
I couldn't help but
go to the dark side.
1110
00:37:38,101 --> 00:37:41,822
Uh, we turn into this fast,
nimble, powerful thing with
1111
00:37:41,822 --> 00:37:43,571
a ton of experience, right?
1112
00:37:43,851 --> 00:37:46,812
And I think that is what's
gonna d- differentiate the
1113
00:37:46,821 --> 00:37:49,781
companies that languish
and get beat up from the
1114
00:37:49,781 --> 00:37:53,271
companies that absolutely
restart, reset, and kick ass.
1115
00:37:54,561 --> 00:37:56,171
Overthinking your startup
because you're going it alone?
1116
00:37:56,622 --> 00:37:58,412
You don't have to, and
honestly, you shouldn't.
1117
00:37:58,722 --> 00:38:01,332
Because instead, you can
learn directly from peers
1118
00:38:01,332 --> 00:38:02,502
who've been in your shoes.
1119
00:38:02,711 --> 00:38:05,042
Connect with bootstrap
founders and the advisors
1120
00:38:05,042 --> 00:38:07,471
helping them win in the
Startups.com community.
1121
00:38:07,641 --> 00:38:12,231
Check out the Startups.com
community at www.startups.com
1122
00:38:12,351 --> 00:38:13,271
to see if it's for you.
1123
00:38:13,531 --> 00:38:14,572
Could be just the
thing you need.
1124
00:38:14,821 --> 00:38:15,762
I hope to see you inside
00:00:00,236 --> 00:00:02,476
Welcome back to another episode
of the Startup Therapy podcast.
2
00:00:02,476 --> 00:00:04,756
This is Ryan Rutan, joined
as always by my friend,
3
00:00:04,766 --> 00:00:07,746
the founder and CEO of
Startups.com, Will Schroeder.
4
00:00:08,256 --> 00:00:12,906
Will, as founders, we spend
years and years climbing out
5
00:00:12,906 --> 00:00:16,375
of startup mode, the chaos, the
ramen, the will payroll clear.
6
00:00:16,565 --> 00:00:16,855
Yeah.
7
00:00:17,015 --> 00:00:18,235
You finally get to the top.
8
00:00:18,796 --> 00:00:21,485
You know what you sell, you
know who you compete with,
9
00:00:21,556 --> 00:00:25,135
you know how you get paid,
and then somebody or something
10
00:00:25,136 --> 00:00:27,736
walks over and hits the reset
button, and all of a sudden
11
00:00:27,736 --> 00:00:30,065
it's, "Hop in the family
truckster, kids. We're going
12
00:00:30,065 --> 00:00:33,695
back to startup land." And
that's where every established
13
00:00:33,706 --> 00:00:34,955
company's sitting right now.
14
00:00:34,955 --> 00:00:37,595
AI didn't- Yeah … knock on
the door, it kicked it in.
15
00:00:37,755 --> 00:00:38,545
Yep, yep.
16
00:00:38,555 --> 00:00:42,745
And it took moats that we
spent decades digging and
17
00:00:42,746 --> 00:00:45,706
filled them in with dirt
over a freaking weekend.
18
00:00:45,735 --> 00:00:45,945
Yep.
19
00:00:46,215 --> 00:00:49,555
So today on Startup Therapy,
every assumption you made about
20
00:00:49,555 --> 00:00:51,175
your business just expired.
21
00:00:51,186 --> 00:00:51,216
Yep.
22
00:00:51,425 --> 00:00:54,585
Your org chart is now a museum
exhibit, and the only people
23
00:00:54,585 --> 00:00:57,986
who survive this are the ones
who are willing to run naked
24
00:00:57,986 --> 00:01:00,005
into the abyss one more time.
25
00:01:00,005 --> 00:01:02,275
But the good news is
we've done this before.
26
00:01:02,285 --> 00:01:02,305
Yeah.
27
00:01:02,456 --> 00:01:03,985
And that uniform always fits.
28
00:01:04,046 --> 00:01:04,216
Yep.
29
00:01:04,216 --> 00:01:06,486
The bad news is so
is your competition.
30
00:01:06,695 --> 00:01:06,815
Yep.
31
00:01:06,816 --> 00:01:09,125
And they have no
payroll to protect.
32
00:01:09,856 --> 00:01:12,925
I'm Ryan, that's Will, or maybe
that's Will- … depending on
33
00:01:12,956 --> 00:01:16,205
where you're watching this, and
surprise, we're a startup again.
34
00:01:16,465 --> 00:01:18,635
We're a startup again,
whether we wanna be or not.
35
00:01:18,695 --> 00:01:21,766
And so like- Exactly … that's
the most interesting part
36
00:01:21,766 --> 00:01:25,486
about this, is that the
world changed so fast.
37
00:01:25,486 --> 00:01:25,545
So fast.
38
00:01:25,545 --> 00:01:29,535
It hit the reset button so
fast for so many people.
39
00:01:29,875 --> 00:01:32,786
You know, we've got a, a very
broad range of people as far as
40
00:01:32,786 --> 00:01:35,545
their businesses that listen to
this podcast and, and we're very
41
00:01:35,545 --> 00:01:36,915
thankful for, for all of them.
42
00:01:37,215 --> 00:01:39,226
But, you know, of course, a
pretty good concentration of
43
00:01:39,226 --> 00:01:41,295
folks that are in tech and
who build software companies,
44
00:01:41,295 --> 00:01:44,595
et cetera, and all of them,
'cause we talked to all of
45
00:01:44,595 --> 00:01:48,435
them, are like, "Huh, well,
that's interesting. You mean
46
00:01:48,435 --> 00:01:51,485
what I spent," like you said,
"like a decade building is
47
00:01:51,485 --> 00:01:53,336
a prompt now? Cool." Yeah.
48
00:01:54,026 --> 00:01:55,855
Or if you're in any content
business whatsoever-
49
00:01:55,855 --> 00:01:56,275
Didn't see that coming
50
00:01:56,566 --> 00:01:57,705
yeah, didn't see that coming.
51
00:01:57,715 --> 00:02:00,615
And look, I mean, some folks
are in a fortunate position
52
00:02:00,615 --> 00:02:03,455
where, like this, you know, new
generation of AI helps them.
53
00:02:04,035 --> 00:02:07,265
But I'm gonna argue that
it imperils far more
54
00:02:07,265 --> 00:02:08,135
people than it's helping.
55
00:02:08,165 --> 00:02:11,265
I think it helps, like, 1%
of people at the expense-
56
00:02:11,396 --> 00:02:12,765
Yeah … of 99% of people.
57
00:02:12,765 --> 00:02:16,895
And, and so it forces all of
these instantiated businesses
58
00:02:16,896 --> 00:02:18,975
really of all sizes to restart.
59
00:02:19,215 --> 00:02:20,995
And here's what's crazy
about… You know, this isn't
60
00:02:21,006 --> 00:02:22,575
like one of those case, like
when the internet came and
61
00:02:22,575 --> 00:02:24,426
you just had to, like, you
had a different form factor.
62
00:02:24,775 --> 00:02:28,505
This is like every single
aspect of what it means
63
00:02:28,775 --> 00:02:32,416
to build and operate a
company has been reset.
64
00:02:33,164 --> 00:02:36,363
And so- Yep … all of a
sudden, size, which used to be
65
00:02:36,363 --> 00:02:38,974
a virtue, is a liability, right?
66
00:02:38,974 --> 00:02:39,103
Huge.
67
00:02:39,214 --> 00:02:39,393
Damn.
68
00:02:39,404 --> 00:02:40,173
Huge liability.
69
00:02:40,374 --> 00:02:40,643
Right?
70
00:02:40,643 --> 00:02:42,143
Which sounds- Huge liability
… a lot like where startups
71
00:02:42,154 --> 00:02:43,293
start to come in, right?
72
00:02:43,693 --> 00:02:48,063
And products that we could
always rely on because we were
73
00:02:48,063 --> 00:02:51,243
the only people that had the
capital to build it, or- Yep
74
00:02:51,293 --> 00:02:53,303
… we'd, you know, been around in
the marketplace long enough,
75
00:02:53,523 --> 00:02:56,013
all of a sudden it's like,
yeah, not that important, right?
76
00:02:56,013 --> 00:02:56,913
You know, damn.
77
00:02:56,923 --> 00:02:56,953
Right.
78
00:02:57,224 --> 00:02:57,504
Yeah.
79
00:02:57,504 --> 00:02:57,713
Right?
80
00:02:57,714 --> 00:02:59,643
And it wasn't one little
fundamental shift, right?
81
00:02:59,703 --> 00:03:01,524
It was three at the
same time, right?
82
00:03:01,534 --> 00:03:01,583
Mm-hmm.
83
00:03:01,583 --> 00:03:03,863
AI walked in and flipped
all three switches off
84
00:03:03,863 --> 00:03:04,723
in the conference room.
85
00:03:05,273 --> 00:03:07,403
Cost to build went
to zero, right?
86
00:03:07,404 --> 00:03:10,223
If you had software content
product that took real effort,
87
00:03:10,224 --> 00:03:11,803
real money, real time- Yeah
88
00:03:11,853 --> 00:03:15,593
that effort is now a
weekend hackathon, right?
89
00:03:16,483 --> 00:03:16,963
Bananas.
90
00:03:16,994 --> 00:03:20,453
The cost of staff and
systems collapsed, right?
91
00:03:20,463 --> 00:03:22,743
Having enough revenue
to fund a big team used
92
00:03:22,744 --> 00:03:23,533
to be an advantage.
93
00:03:23,713 --> 00:03:24,003
Yeah.
94
00:03:24,043 --> 00:03:26,383
Now that headcount is
the damn anchor, right?
95
00:03:26,384 --> 00:03:27,703
And the boat next to
you doesn't have one.
96
00:03:27,703 --> 00:03:28,633
That's the real issue, right?
97
00:03:28,633 --> 00:03:30,284
Okay, so- There's somebody
just speeding past you
98
00:03:30,284 --> 00:03:31,943
where we're like, "Stroke.
99
00:03:32,343 --> 00:03:32,813
Stroke.
100
00:03:32,814 --> 00:03:34,503
Where the hell are
they going," right?
101
00:03:35,353 --> 00:03:37,514
And now the last one, I think
this is one of the ones that's
102
00:03:37,514 --> 00:03:40,053
incredible and, and I think
you and I are enjoying this
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00:03:40,214 --> 00:03:43,124
thing right now, which is that
everything can now be built.
104
00:03:43,433 --> 00:03:44,234
Un- unbelievable.
105
00:03:44,483 --> 00:03:46,653
The stuff that we wouldn't
even dare to think of even
106
00:03:46,663 --> 00:03:48,814
six months ago, we were
like, "Wouldn't it be cool?
107
00:03:48,814 --> 00:03:50,753
But no, we can't do that." Yeah,
of course we can't do that.
108
00:03:50,753 --> 00:03:51,943
That's gone, right?
109
00:03:51,943 --> 00:03:55,684
Now it's all buildable by
almost anyone at almost zero
110
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cost and basically overnight.
111
00:03:58,104 --> 00:03:58,704
Yes.
112
00:03:58,933 --> 00:04:00,523
Everything has changed.
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00:04:00,583 --> 00:04:02,733
And, and honestly, like I, I'm
sure you probably feel the same
114
00:04:02,733 --> 00:04:05,893
way, this just feels like the
visible part of the iceberg.
115
00:04:05,933 --> 00:04:07,433
Like there's a whole
lot more to come.
116
00:04:07,503 --> 00:04:10,713
Which is a perfect setup
because I think at one point,
117
00:04:10,744 --> 00:04:11,763
let's use startups.com.
118
00:04:11,763 --> 00:04:13,453
Startups.com has been around-
Sure … for 15 years.
119
00:04:13,473 --> 00:04:15,253
We're a very
well-instantiated company.
120
00:04:15,473 --> 00:04:17,353
We've got a bunch of products
that have been in the market.
121
00:04:17,393 --> 00:04:19,293
To our credit, we're
pretty, uh, diversified
122
00:04:19,413 --> 00:04:20,103
across, you know- Yep
123
00:04:20,113 --> 00:04:21,793
revenue lines and
income lines, et cetera.
124
00:04:22,193 --> 00:04:25,683
But everything we do is
based on one of two things.
125
00:04:25,683 --> 00:04:27,713
We either built software or
information that we sold.
126
00:04:27,723 --> 00:04:27,753
Yep.
127
00:04:28,323 --> 00:04:31,414
And now nearly all of it can
either be, and this applies
128
00:04:31,414 --> 00:04:35,163
to everybody, not us, but uh,
can be built overnight, right?
129
00:04:35,163 --> 00:04:35,674
Yep.
130
00:04:35,674 --> 00:04:38,353
Or now you don't need us
to gate that information.
131
00:04:38,763 --> 00:04:38,963
Right.
132
00:04:38,963 --> 00:04:40,573
You literally just
ask Claude, right?
133
00:04:40,573 --> 00:04:41,953
Or ask GPT- Yep … or
ask whatever.
134
00:04:41,953 --> 00:04:43,934
Like, you know, the, they
may not give you the right
135
00:04:43,934 --> 00:04:45,793
answer, but you don't need us.
136
00:04:45,793 --> 00:04:47,653
You're welcome for
training that, right?
137
00:04:47,653 --> 00:04:47,963
Yeah.
138
00:04:47,963 --> 00:04:50,243
Like we, we had a lot to
do with those answers.
139
00:04:50,273 --> 00:04:50,473
Yeah.
140
00:04:51,244 --> 00:04:51,944
You're welcome, Claude.
141
00:04:52,294 --> 00:04:53,474
But here's what's interesting.
142
00:04:53,863 --> 00:04:56,173
I think initially, and I'll,
I'll speak from personal
143
00:04:56,173 --> 00:05:00,484
experience- If we rewind back
a year or two years, which
144
00:05:00,554 --> 00:05:03,864
isn't that long ago- Yeah … I
think our initial reaction
145
00:05:03,864 --> 00:05:07,994
to all of this was something
more akin to y- how do we
146
00:05:07,994 --> 00:05:09,194
protect ourselves, right?
147
00:05:09,194 --> 00:05:09,214
Mm-hmm.
148
00:05:09,214 --> 00:05:11,114
You know, these new things
are happening, and how do we
149
00:05:11,114 --> 00:05:12,424
take what we currently do- Yep
150
00:05:12,874 --> 00:05:13,773
and protect it?
151
00:05:13,954 --> 00:05:16,264
Which is a, a, a logical-
Yep … you know, response.
152
00:05:16,774 --> 00:05:18,773
But I think at some point-
Makes the move … and we
153
00:05:18,774 --> 00:05:21,303
have a unique purview, and I,
I don't wanna overlook this.
154
00:05:21,743 --> 00:05:24,433
See, most businesses,
their business isn't
155
00:05:24,444 --> 00:05:27,333
talking to thousands of
other startups, right?
156
00:05:27,333 --> 00:05:27,453
Right.
157
00:05:27,483 --> 00:05:28,933
All day long, all the time.
158
00:05:29,303 --> 00:05:31,434
Whereas that actually
is our business.
159
00:05:31,443 --> 00:05:31,473
Yes.
160
00:05:31,704 --> 00:05:35,743
So we're watching disruption
happen across every single
161
00:05:35,744 --> 00:05:37,483
plane all freaking day.
162
00:05:37,494 --> 00:05:37,514
Yeah.
163
00:05:37,943 --> 00:05:40,193
So, like, in other words,
like, the, the siren song
164
00:05:40,193 --> 00:05:43,033
of how things are changing
is blaring on our speakers
165
00:05:43,454 --> 00:05:45,883
because of who we literally
s- work with every day.
166
00:05:46,550 --> 00:05:49,719
Every time someone sends me a
pitch deck to look at and says,
167
00:05:49,719 --> 00:05:53,270
"Hey, w- you're disrupting
this space," my first thought
168
00:05:53,420 --> 00:05:56,550
isn't just their pitch deck,
it's, "I wonder what the
169
00:05:56,550 --> 00:05:58,479
guy who's getting disrupted
right now is thinking?"
170
00:05:58,479 --> 00:05:59,530
Yeah, yeah.
171
00:05:59,590 --> 00:06:03,060
My father-in-law, uh, ran a law
firm for a long time, and he
172
00:06:03,060 --> 00:06:04,150
was a, a successful attorney.
173
00:06:04,480 --> 00:06:05,570
Uh, he retired a
couple years ago.
174
00:06:06,000 --> 00:06:09,579
And I talked to him about this,
and I said, "Man, did you get
175
00:06:09,580 --> 00:06:11,310
out at the right time," right?
176
00:06:11,310 --> 00:06:11,369
Yeah.
177
00:06:11,369 --> 00:06:13,909
Like, right before this
whole thing was a problem
178
00:06:13,909 --> 00:06:18,059
because you practicing law
is about to be a prompt.
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00:06:18,059 --> 00:06:19,680
And I don't mean it in a
derogatory way- No … or
180
00:06:19,680 --> 00:06:21,349
dis- you know, take away
from what he's saying.
181
00:06:21,350 --> 00:06:23,460
It's, that's even a, an issue.
182
00:06:23,510 --> 00:06:24,514
That's, it's even on the table.
183
00:06:24,514 --> 00:06:24,850
Right.
184
00:06:24,850 --> 00:06:25,130
Right?
185
00:06:25,169 --> 00:06:28,370
Like- Yep … dude, you made
it 50 years without that even
186
00:06:28,370 --> 00:06:30,010
being on, on the table, right?
187
00:06:30,350 --> 00:06:30,450
Yeah.
188
00:06:30,539 --> 00:06:31,960
And now overnight.
189
00:06:31,960 --> 00:06:33,229
So I, I think about him.
190
00:06:33,319 --> 00:06:35,969
I think about folks like
that who are being disrupted.
191
00:06:36,440 --> 00:06:36,460
Yeah.
192
00:06:36,469 --> 00:06:39,679
And I think every time I see
all of these people all day
193
00:06:39,679 --> 00:06:43,149
long, Ryan, that are disrupting
it, I'm thinking there's
194
00:06:43,159 --> 00:06:45,480
s- there's 10 people on the
other side of that disruption.
195
00:06:46,049 --> 00:06:46,259
Yeah.
196
00:06:46,260 --> 00:06:47,729
And, and all the people
that work for them.
197
00:06:48,100 --> 00:06:48,659
That's a problem.
198
00:06:48,719 --> 00:06:48,979
Yeah.
199
00:06:48,999 --> 00:06:51,080
What's crazy though, man,
like I'm gonna push back on
200
00:06:51,080 --> 00:06:52,270
disruption just a little bit.
201
00:06:52,270 --> 00:06:53,959
And I, I- Mm-hmm … I'm
mincing words with a really
202
00:06:53,959 --> 00:06:56,179
particular purpose here because
in a lot of cases you're not
203
00:06:56,179 --> 00:07:00,139
even getting disrupted, you're
just getting speed run, right?
204
00:07:00,149 --> 00:07:02,569
They're not actually
doing anything different
205
00:07:02,569 --> 00:07:03,440
than what you're doing.
206
00:07:03,830 --> 00:07:07,049
They're just doing it faster-
Yeah … with a much lower
207
00:07:07,050 --> 00:07:10,049
cost infrastructure and
a lot less bulk, right?
208
00:07:10,219 --> 00:07:10,479
Right.
209
00:07:10,529 --> 00:07:14,350
It took us 15 years to build
the castle and one weekend to
210
00:07:14,350 --> 00:07:17,299
find out that the drawbridge
was just a decoration, right?
211
00:07:17,309 --> 00:07:17,649
Why?
212
00:07:17,899 --> 00:07:19,679
Because everybody
else is just running.
213
00:07:19,679 --> 00:07:21,809
We're like- Yeah … "But the
castle's over here." They're
214
00:07:21,830 --> 00:07:23,619
like, "Yeah, but the promised
land's that way," right?
215
00:07:23,619 --> 00:07:24,270
Yeah, yeah, yeah.
216
00:07:24,270 --> 00:07:24,729
Shit.
217
00:07:24,910 --> 00:07:27,279
We've got, uh, spears
and shields, and somebody
218
00:07:27,279 --> 00:07:27,609
on the other side's- Yes
219
00:07:27,609 --> 00:07:28,889
g- got a musket, right?
220
00:07:29,219 --> 00:07:29,459
Yeah.
221
00:07:30,300 --> 00:07:33,420
So, here's how it would…
Uh, if we say s- stop and say,
222
00:07:33,510 --> 00:07:34,429
"What just happened," right?
223
00:07:34,459 --> 00:07:35,280
"What the hell just
happened?" Yeah.
224
00:07:35,620 --> 00:07:37,449
Let's put it in
three containers.
225
00:07:37,459 --> 00:07:38,779
This is kind of
where I'm seeing it.
226
00:07:39,260 --> 00:07:41,030
The first y- you just
mentioned a moment ago.
227
00:07:41,289 --> 00:07:44,579
The cost to do kind of
everything, not just build- Yep
228
00:07:44,979 --> 00:07:48,079
but operate- Yep … went
to damn near zero.
229
00:07:48,219 --> 00:07:49,689
Now, a lot of people-
Yeah … push back on that,
230
00:07:50,190 --> 00:07:52,339
and they'll say, "No, it didn't
really." Like, yes, a couple
231
00:07:52,349 --> 00:07:53,430
things went, you know, lower.
232
00:07:53,430 --> 00:07:54,440
Da, da, da.
233
00:07:54,440 --> 00:07:55,249
Let me put it this way.
234
00:07:55,799 --> 00:07:58,489
If they haven't
yet, they will be.
235
00:07:58,700 --> 00:07:58,790
Yeah.
236
00:07:58,969 --> 00:07:59,979
H- here's a different
way to think about it.
237
00:08:00,289 --> 00:08:02,949
If there's a cost lingering
out there that hasn't been
238
00:08:02,999 --> 00:08:06,349
optimized, AI'd, whatever,
it means that there's 50
239
00:08:06,370 --> 00:08:08,869
companies thinking about how
to do it because that's- Yeah
240
00:08:08,870 --> 00:08:10,890
the only morsel of ta-
of, uh, on the table
241
00:08:10,890 --> 00:08:11,649
that's left for them.
242
00:08:11,849 --> 00:08:13,650
They're just twiddling their
thumbs waiting for Fable
243
00:08:13,650 --> 00:08:15,799
to come back, like, "We've
got this. We've got this."
244
00:08:17,448 --> 00:08:21,907
So the first is with the
cost going to zero, that's a
245
00:08:21,907 --> 00:08:24,698
huge problem because I don't
think- Yeah … enough people
246
00:08:24,698 --> 00:08:29,717
understand how much things being
expensive allowed the center
247
00:08:29,738 --> 00:08:31,957
to hold when it comes to- Yeah
248
00:08:32,047 --> 00:08:32,597
any business.
249
00:08:32,698 --> 00:08:35,337
The castle and moat analog is a
really interesting one because
250
00:08:35,347 --> 00:08:37,107
that was the way it worked.
251
00:08:37,188 --> 00:08:38,157
That's the way we
thought it worked.
252
00:08:38,157 --> 00:08:40,518
And because of the high cost,
because of all of the, you
253
00:08:40,518 --> 00:08:43,007
know, the time complexity,
all that stuff, the basic goal
254
00:08:43,007 --> 00:08:47,038
was to build something big
enough that would function
255
00:08:47,038 --> 00:08:49,908
and serve enough people It
costs enough to build it.
256
00:08:49,908 --> 00:08:51,448
It'd be hard for other
people to build it, and
257
00:08:51,448 --> 00:08:52,908
then just try to stay there.
258
00:08:53,458 --> 00:08:56,368
The point was to just try to
then maintain status quo so
259
00:08:56,368 --> 00:08:58,968
you keep making money for year
after year after year, and that
260
00:08:58,968 --> 00:09:00,928
worked for a long time, right?
261
00:09:00,928 --> 00:09:02,517
But all of a sudden,
that's gone, right?
262
00:09:02,517 --> 00:09:02,727
Yeah.
263
00:09:02,818 --> 00:09:04,838
And what you start to realize
was that y- you know, your
264
00:09:04,838 --> 00:09:06,147
moat was never the code.
265
00:09:06,148 --> 00:09:06,898
It wasn't the product.
266
00:09:06,898 --> 00:09:07,448
It wasn't the team.
267
00:09:07,728 --> 00:09:10,068
It was the time and money
it took to write that
268
00:09:10,068 --> 00:09:11,738
code, to build that team,
to do all those things.
269
00:09:11,767 --> 00:09:12,037
Yep.
270
00:09:12,037 --> 00:09:13,808
AI just made those
damn near free.
271
00:09:14,007 --> 00:09:14,378
Which is a big problem.
272
00:09:14,378 --> 00:09:14,538
Right?
273
00:09:14,538 --> 00:09:17,268
Which means most companies
never actually had a moat.
274
00:09:17,847 --> 00:09:19,108
They had a head start.
275
00:09:19,118 --> 00:09:19,138
Yeah.
276
00:09:19,157 --> 00:09:23,208
And head starts expire, and
they are expiring at record
277
00:09:23,208 --> 00:09:26,428
rate, faster than strawberries
from Meijer at this point, man.
278
00:09:26,687 --> 00:09:28,907
Things are just going
bad left and right.
279
00:09:29,777 --> 00:09:31,987
That's a problem because,
uh, it's twofold.
280
00:09:31,988 --> 00:09:34,998
One, because our time and
investment, that moat that
281
00:09:34,998 --> 00:09:37,447
we had built, all of a
sudden doesn't exist in the
282
00:09:37,448 --> 00:09:38,117
same way that it used to.
283
00:09:38,128 --> 00:09:38,368
Yep.
284
00:09:38,797 --> 00:09:41,277
But more importantly, that's
also because the other people
285
00:09:41,277 --> 00:09:43,787
that are c- up and coming
can actually build a better
286
00:09:43,788 --> 00:09:46,337
product in almost no time.
287
00:09:46,347 --> 00:09:46,377
Yes.
288
00:09:46,738 --> 00:09:47,647
In almost no time.
289
00:09:47,648 --> 00:09:47,668
Yeah.
290
00:09:47,687 --> 00:09:48,687
Now, they still
have to market it.
291
00:09:48,698 --> 00:09:50,007
They still have to do
customer acquisition, et
292
00:09:50,007 --> 00:09:50,837
cetera, which isn't a given.
293
00:09:50,837 --> 00:09:50,987
Sure.
294
00:09:51,527 --> 00:09:54,717
But, but they can get to the
parity at a product level,
295
00:09:54,727 --> 00:09:56,927
if not much faster in many c-
or much bigger- Right … in
296
00:09:56,927 --> 00:10:00,908
many cases at very little
cost, which is dangerous.
297
00:10:01,117 --> 00:10:01,668
Here's why.
298
00:10:02,107 --> 00:10:05,027
It means we can now have
30 competitors overnight,
299
00:10:05,507 --> 00:10:07,097
but here's what's-
Yeah … even more dangerous.
300
00:10:07,357 --> 00:10:10,718
It means those competitors
kinda don't have to worry about
301
00:10:10,718 --> 00:10:13,007
going out of business 'cause
it's just two dudes in a room.
302
00:10:13,677 --> 00:10:13,857
Right.
303
00:10:13,918 --> 00:10:14,188
Right?
304
00:10:14,488 --> 00:10:15,998
That's the dangerous part.
305
00:10:15,998 --> 00:10:18,347
It used to be- Right … that
when you had a lot of
306
00:10:18,348 --> 00:10:20,817
competitors, you kinda
just starved them out.
307
00:10:21,198 --> 00:10:23,138
You kept running- Yep … and
eventually, your- Literally,
308
00:10:23,138 --> 00:10:24,567
it was castle warfare.
309
00:10:24,577 --> 00:10:26,447
You just- Yeah … you
just rode out the siege.
310
00:10:26,488 --> 00:10:27,387
That's all you had to do.
311
00:10:27,427 --> 00:10:28,138
You do, right?
312
00:10:28,198 --> 00:10:32,117
In our lifetime at Startups.com,
countless competitors, right?
313
00:10:32,117 --> 00:10:32,137
Yeah, yeah.
314
00:10:32,177 --> 00:10:33,997
Across all the businesses
that we've had, et cetera.
315
00:10:34,247 --> 00:10:34,467
Oh, my God.
316
00:10:34,467 --> 00:10:36,137
I mean, so much that we don't
even pay attention anymore.
317
00:10:36,137 --> 00:10:36,987
Go back to the fundable days.
318
00:10:36,997 --> 00:10:39,738
How many, how many crowdfunding
for equity platforms, uh,
319
00:10:39,787 --> 00:10:42,657
appeared overnight and then
disappeared nearly as quickly?
320
00:10:42,997 --> 00:10:46,297
Once a month, like clockwork,
a, a friend of mine, another
321
00:10:46,297 --> 00:10:47,607
founder, was like, "Oh,
my God, did you hear about
322
00:10:47,607 --> 00:10:49,977
this company in your space?"
I'm like, "I didn't, and I
323
00:10:50,007 --> 00:10:50,937
actually just don't care."
324
00:10:50,988 --> 00:10:51,868
Yeah, don't care.
325
00:10:51,868 --> 00:10:53,857
And, and they can never
believe that I'm not all,
326
00:10:53,857 --> 00:10:54,807
like, wired up about it.
327
00:10:54,977 --> 00:10:55,147
Yeah.
328
00:10:55,147 --> 00:10:58,747
And it's because I've seen so
many people come and go so many
329
00:10:58,747 --> 00:11:02,657
times- Yeah … that I realize
that, like, it's only a problem
330
00:11:02,917 --> 00:11:04,167
when it becomes a problem.
331
00:11:04,318 --> 00:11:05,808
Like, like, in other words-
Yeah … if, if they happen
332
00:11:05,808 --> 00:11:08,267
to hit that threshold and
they're, I'm somehow losing
333
00:11:08,267 --> 00:11:11,737
lots of business, maybe, but
until then, it's not a problem.
334
00:11:12,467 --> 00:11:15,837
And I say that to say
because I knew they
335
00:11:15,837 --> 00:11:16,788
would go out of business.
336
00:11:16,917 --> 00:11:19,177
I knew that if I just
held on longer than they
337
00:11:19,178 --> 00:11:21,498
could, that eventually they
wouldn't be around, and that
338
00:11:21,538 --> 00:11:23,187
largely held true, right?
339
00:11:23,297 --> 00:11:23,537
Yeah.
340
00:11:23,757 --> 00:11:24,437
Here's a good example.
341
00:11:24,917 --> 00:11:27,107
How many competitors did
we have at Zirtual.com, our
342
00:11:27,107 --> 00:11:28,207
virtual assistant business?
343
00:11:28,547 --> 00:11:29,067
All of them.
344
00:11:29,417 --> 00:11:33,312
Actually, yeah, like literally
If you get down into who is
345
00:11:33,312 --> 00:11:35,842
actually a competitor of that
company, tens of thousands,
346
00:11:35,842 --> 00:11:38,762
because there were these lots of
little agencies or big agencies-
347
00:11:38,762 --> 00:11:40,832
Yep … there were individual
people, like millions if you
348
00:11:40,842 --> 00:11:41,612
count the individuals, right?
349
00:11:41,612 --> 00:11:41,812
Right.
350
00:11:41,812 --> 00:11:43,932
So yes, lots and
lots of competition.
351
00:11:44,072 --> 00:11:46,202
And we started as the biggest,
'cause we bought the company,
352
00:11:46,342 --> 00:11:48,152
and we ended as the biggest
when we sold the company.
353
00:11:48,152 --> 00:11:48,341
Yep.
354
00:11:48,411 --> 00:11:48,711
Right?
355
00:11:48,761 --> 00:11:51,591
Like, not because we're
anything special, because
356
00:11:51,591 --> 00:11:54,772
it's really hard to
unseat incumbents, right?
357
00:11:54,851 --> 00:11:55,121
Yep.
358
00:11:55,271 --> 00:11:58,512
Now, all that said, all
that said, the difference
359
00:11:58,552 --> 00:12:00,721
in this case is these
cockroaches never die.
360
00:12:01,421 --> 00:12:01,721
Right.
361
00:12:01,771 --> 00:12:04,881
Like, these cockroaches are
gonna be around forever nibbling
362
00:12:04,881 --> 00:12:06,141
away at our market share.
363
00:12:06,182 --> 00:12:06,462
Yep.
364
00:12:06,502 --> 00:12:06,822
Right?
365
00:12:06,932 --> 00:12:07,851
And that becomes a problem.
366
00:12:07,851 --> 00:12:09,911
So that, that's one of three
things that just happened.
367
00:12:10,601 --> 00:12:12,751
People can get to market
fast, they can get to market
368
00:12:12,752 --> 00:12:16,442
meaningfully, and they
can afford to not go away.
369
00:12:16,841 --> 00:12:17,301
Big problem.
370
00:12:17,491 --> 00:12:18,901
That's actually the
biggest one, right?
371
00:12:18,921 --> 00:12:20,901
The, the afford to not go
away is the biggest problem.
372
00:12:20,901 --> 00:12:21,772
We talk about this all the time.
373
00:12:21,782 --> 00:12:25,141
Like, if you can just stay
around long enough, you start
374
00:12:25,142 --> 00:12:27,171
to solve so many of your
little problems and then some
375
00:12:27,171 --> 00:12:29,081
of your big problems, then
you become a viable company.
376
00:12:29,081 --> 00:12:29,592
And, and- Oh
377
00:12:29,622 --> 00:12:32,121
it's just got really
easy now to stick around
378
00:12:32,122 --> 00:12:33,932
for a long, long time.
379
00:12:34,061 --> 00:12:34,711
That's what I'm saying.
380
00:12:34,761 --> 00:12:37,151
And if you're funded as well,
again, assuming you spend
381
00:12:37,151 --> 00:12:38,931
your money right, you can-
Yeah … really stick around
382
00:12:38,931 --> 00:12:39,771
for a long time, right?
383
00:12:39,812 --> 00:12:40,331
Yeah, yeah.
384
00:12:40,331 --> 00:12:45,071
The second thing is because the
cost of staff and systems has
385
00:12:45,081 --> 00:12:48,352
plummeted, you're now competing
with people that don't have
386
00:12:48,361 --> 00:12:50,301
your ballast, your dead weight.
387
00:12:50,302 --> 00:12:50,572
Right.
388
00:12:50,851 --> 00:12:51,141
Right?
389
00:12:51,141 --> 00:12:51,311
Yep.
390
00:12:51,361 --> 00:12:53,801
And so, you know, if you're
a company right now, a
391
00:12:53,802 --> 00:12:56,191
software company, that's
got 100 people in it-
392
00:12:56,351 --> 00:12:57,481
Yeah … which isn't massive.
393
00:12:57,482 --> 00:12:58,141
I mean, it's a good size.
394
00:12:58,202 --> 00:12:58,412
No.
395
00:12:58,501 --> 00:12:59,101
I'm not, I'm not knocking it.
396
00:12:59,151 --> 00:13:01,881
But it's a lot more payroll
tax than two people.
397
00:13:02,141 --> 00:13:03,201
Right.
398
00:13:03,391 --> 00:13:06,391
And it's like, wait a minute,
what if, crazy to think,
399
00:13:06,622 --> 00:13:09,161
in today's terms with the
tools that are available
400
00:13:09,162 --> 00:13:12,741
and the pace of everything,
I need 10, maybe 20- Yeah
401
00:13:12,741 --> 00:13:13,691
at t- tops, right?
402
00:13:13,772 --> 00:13:14,032
Yep.
403
00:13:14,372 --> 00:13:17,861
Think of how dangerous those
other 80 people are to the
404
00:13:17,861 --> 00:13:19,311
future of your company, right?
405
00:13:19,361 --> 00:13:19,541
Yeah.
406
00:13:19,561 --> 00:13:20,671
That's scary as hell.
407
00:13:20,872 --> 00:13:22,541
You know, we'll, we'll
talk about that some more.
408
00:13:23,281 --> 00:13:25,501
But the last part that
I think people are just
409
00:13:25,531 --> 00:13:30,011
coming to terms with is that
everything can be built now.
410
00:13:30,571 --> 00:13:33,121
For example, in the past, y- we
talked about this a moment ago.
411
00:13:33,721 --> 00:13:36,942
In the past when we sat
down and we scoped out our
412
00:13:36,942 --> 00:13:40,791
roadmaps, et cetera, they
were always fundamentally
413
00:13:40,791 --> 00:13:42,431
delimited by man hours.
414
00:13:42,441 --> 00:13:42,471
Yep.
415
00:13:42,901 --> 00:13:43,101
Right?
416
00:13:43,101 --> 00:13:43,229
Yep.
417
00:13:43,229 --> 00:13:45,161
I mean, and we had a good
sense for how many man hours
418
00:13:45,162 --> 00:13:47,371
could produce a product,
and the timeline, and
419
00:13:47,371 --> 00:13:48,242
everything else like that.
420
00:13:48,882 --> 00:13:52,511
And so we could scope what
our product could be, the
421
00:13:52,511 --> 00:13:54,952
limits of what it could
be, et cetera, in very
422
00:13:54,962 --> 00:13:57,121
verifiable terms because we…
423
00:13:57,121 --> 00:13:59,091
Of course it can't be bigger
than this, 'cause that would
424
00:13:59,091 --> 00:14:01,561
take- Right … 200 people
that we, we don't have, right?
425
00:14:01,912 --> 00:14:05,321
So we would conceive of
things fairly constrained.
426
00:14:05,621 --> 00:14:06,061
Yeah.
427
00:14:06,221 --> 00:14:06,621
Always.
428
00:14:06,671 --> 00:14:08,691
Like, y- we almost always
started with the constraints.
429
00:14:08,691 --> 00:14:10,701
Like, what are the
resources we have available?
430
00:14:10,701 --> 00:14:11,861
What can we do within that?
431
00:14:12,272 --> 00:14:13,951
And it was extremely
constraining.
432
00:14:13,951 --> 00:14:15,081
It wasn't a little constraining.
433
00:14:15,091 --> 00:14:15,111
Yeah.
434
00:14:15,121 --> 00:14:17,311
Now that those limitations
are off, you're not just
435
00:14:17,341 --> 00:14:19,641
competing with what you did,
you're competing with all the
436
00:14:19,641 --> 00:14:21,701
things you didn't think you
could do five minutes ago.
437
00:14:21,901 --> 00:14:23,011
That's what I'm s- Right?
438
00:14:23,291 --> 00:14:26,061
This one's really
fascinating to me.
439
00:14:26,451 --> 00:14:26,571
Yeah.
440
00:14:26,651 --> 00:14:28,882
Because I don't think that
there's enough people,
441
00:14:29,041 --> 00:14:33,036
particularly incumbents-
that can do this restart.
442
00:14:33,356 --> 00:14:36,536
Like mentally, to be able to
say- Yeah … "Shit, it doesn't
443
00:14:36,536 --> 00:14:39,075
matter what we did before or
anything like that." It doesn't.
444
00:14:39,075 --> 00:14:41,355
"This is new world, and
we're gonna build with
445
00:14:41,486 --> 00:14:42,645
new world in mind." Yeah.
446
00:14:42,896 --> 00:14:47,825
By the way, in many cases, w-
that new world will deliberately
447
00:14:47,825 --> 00:14:49,805
destroy what pays our bills.
448
00:14:49,955 --> 00:14:50,445
See Google.
449
00:14:50,455 --> 00:14:50,735
Yep.
450
00:14:51,205 --> 00:14:53,535
You gotta start tearing apart
the castle and building wagons.
451
00:14:53,535 --> 00:14:56,205
You gotta start killing the
sacred cows and, and eating
452
00:14:56,205 --> 00:14:58,365
them 'cause it's time to go
push… Like, we gotta run.
453
00:14:58,386 --> 00:14:59,925
Like, it's, it's time
to go at this point.
454
00:15:00,045 --> 00:15:01,865
Building a tree house while
you're chopping down the tree.
455
00:15:02,515 --> 00:15:03,025
Exactly.
456
00:15:03,035 --> 00:15:03,065
Right?
457
00:15:03,455 --> 00:15:03,475
Yeah.
458
00:15:03,485 --> 00:15:06,406
And I think, again, I'm
using Google as a perfect
459
00:15:06,406 --> 00:15:07,565
example of this, right?
460
00:15:07,575 --> 00:15:10,495
Such a smart, innovative
company, obviously incredibly
461
00:15:10,496 --> 00:15:14,026
well-funded, and they're
like, "Okay, AI is making
462
00:15:14,026 --> 00:15:18,016
search go away, but search
pays 70% of our bills."
463
00:15:18,035 --> 00:15:19,736
And they aren't
small bills, right?
464
00:15:19,976 --> 00:15:20,136
No.
465
00:15:20,156 --> 00:15:23,875
"So now we have to innovate
on search, um, on AI that
466
00:15:23,885 --> 00:15:27,755
is gonna displace search and
still pay our bills. Like,
467
00:15:27,755 --> 00:15:29,795
it's, it's the opposite-
Yeah … of what we wanna do."
468
00:15:29,976 --> 00:15:31,215
Now, Google's a smart company.
469
00:15:31,215 --> 00:15:32,085
They'll figure it out.
470
00:15:32,325 --> 00:15:36,235
But think of how many
companies are in that quandary,
471
00:15:36,656 --> 00:15:37,346
where they're like- Yeah
472
00:15:37,455 --> 00:15:39,905
"Yeah, but the next thing
involves people not needing
473
00:15:39,906 --> 00:15:42,626
what we have." Take our virtual
assistant business, right?
474
00:15:43,185 --> 00:15:45,665
If we still owned our virtual
assistant business, the obvious
475
00:15:45,666 --> 00:15:48,016
thing would be, "Well, well
let's move all of the virtual
476
00:15:48,016 --> 00:15:50,405
assistants to be virtual,
to be AI based," right?
477
00:15:50,475 --> 00:15:50,545
Yeah.
478
00:15:50,995 --> 00:15:53,985
Okay, but we literally
get paid to, for people.
479
00:15:54,545 --> 00:15:54,815
Yeah.
480
00:15:54,825 --> 00:15:55,025
Right?
481
00:15:55,086 --> 00:15:56,995
Like, if we don't have
people anymore- And
482
00:15:56,995 --> 00:15:57,455
we pay lots of people.
483
00:15:57,455 --> 00:15:57,905
Yeah, yeah.
484
00:15:57,906 --> 00:15:59,355
I mean, let's over- look,
there, there'll be hundreds and
485
00:15:59,355 --> 00:16:01,075
hundreds of people on payroll.
486
00:16:01,505 --> 00:16:04,742
That's actually our
product It goes back to my
487
00:16:04,742 --> 00:16:06,482
father-in-law, you know, in law.
488
00:16:06,922 --> 00:16:09,082
"Hey, let's build an AI that
does all the law for you."
489
00:16:09,562 --> 00:16:11,262
Yeah, we get paid hourly, man.
490
00:16:11,661 --> 00:16:12,641
Mm-hmm.
491
00:16:12,771 --> 00:16:15,192
That's, like, doesn't…
That's the opposite of
492
00:16:15,192 --> 00:16:16,201
what works well for us.
493
00:16:16,391 --> 00:16:16,982
That's the thing.
494
00:16:17,041 --> 00:16:20,172
Like, the existing models
don't work within the new
495
00:16:20,201 --> 00:16:21,731
technologies at all, right?
496
00:16:21,742 --> 00:16:21,762
Mm-hmm.
497
00:16:21,762 --> 00:16:23,891
They're actually, in
some cases, directly
498
00:16:23,911 --> 00:16:25,062
competitive, to your point.
499
00:16:25,072 --> 00:16:28,651
Like, if all of a sudden, you
know, wow, we can deliver, uh,
500
00:16:28,681 --> 00:16:32,802
legal advice at, at 10X the
rate in terms of speed, cool.
501
00:16:33,371 --> 00:16:35,367
You don't get to charge
any more for that, right?
502
00:16:35,367 --> 00:16:36,362
R- right, right.
503
00:16:36,362 --> 00:16:38,552
And so now you just cut
your billable rate by a, a
504
00:16:38,552 --> 00:16:40,192
magnitude of, of 90%, right?
505
00:16:40,201 --> 00:16:42,011
You're down, like, to
10%, because that's
506
00:16:42,011 --> 00:16:42,661
how long it takes now.
507
00:16:43,331 --> 00:16:44,711
Now- So not exactly a
great outcome for them.
508
00:16:45,031 --> 00:16:48,572
Now imagine, right, you
and I are walking into our
509
00:16:48,572 --> 00:16:50,411
staff meeting, our executive
staff meeting, right?
510
00:16:50,721 --> 00:16:50,891
Yeah.
511
00:16:50,891 --> 00:16:53,422
And let's say we're a 100-person
software company, and the
512
00:16:53,422 --> 00:16:55,991
first thing we're saying is
that, "Hey, we gotta start
513
00:16:56,021 --> 00:16:57,511
thinking like a startup."
And everybody high-fives.
514
00:16:57,581 --> 00:16:58,629
"Oh, yeah. Absolutely."
Yeah, yeah.
515
00:16:58,629 --> 00:16:59,661
Back to the startup, back
to the ground, whatever.
516
00:16:59,931 --> 00:17:00,041
Like, right?
517
00:17:00,041 --> 00:17:00,961
Yeah, flexible.
518
00:17:00,971 --> 00:17:01,781
Y- yeah, yeah, yeah.
519
00:17:01,791 --> 00:17:02,111
Agile.
520
00:17:02,761 --> 00:17:03,051
Right.
521
00:17:03,061 --> 00:17:04,401
Let's go scrum, guys.
522
00:17:04,451 --> 00:17:04,731
Okay.
523
00:17:05,061 --> 00:17:09,591
But our first order of business
is, and now how many jobs that
524
00:17:09,592 --> 00:17:12,911
are being done here are still
gonna be relevant that we still
525
00:17:12,912 --> 00:17:16,021
need to staff up for, and what
do we need to, to swap out?
526
00:17:16,342 --> 00:17:16,532
Yeah.
527
00:17:16,562 --> 00:17:18,051
That's where the conversation-
It's- … starts to get a
528
00:17:18,051 --> 00:17:19,281
little bit different, right?
529
00:17:19,321 --> 00:17:21,521
This is the part nobody wants
to really talk about, right?
530
00:17:21,521 --> 00:17:23,161
Th- th- this is- A huge
piece of just- Yeah … what
531
00:17:23,162 --> 00:17:26,652
made each of us valuable
five minutes ago just got
532
00:17:26,652 --> 00:17:28,061
replaced by a chat prompt.
533
00:17:28,581 --> 00:17:31,271
You know, something that's
really funny about everything
534
00:17:31,272 --> 00:17:34,731
we talk about here is
that none of it is new.
535
00:17:34,991 --> 00:17:37,532
Everything you're dealing
with right now has been done a
536
00:17:37,641 --> 00:17:41,381
thousand times before you, which
means the answer already exists.
537
00:17:41,391 --> 00:17:43,321
You may just not know
it, but that's okay.
538
00:17:43,632 --> 00:17:45,452
That's kind of what
we're here to do.
539
00:17:45,482 --> 00:17:48,121
We talk about this stuff on
the show, but we actually
540
00:17:48,121 --> 00:17:52,191
solve these problems all day
long at groups.startups.com.
541
00:17:52,331 --> 00:17:55,571
So if any of this sounds
familiar, stop guessing
542
00:17:55,641 --> 00:17:56,611
about what to do.
543
00:17:56,861 --> 00:18:00,011
Let us just give you the answers
to the test and be done with it.
544
00:18:00,482 --> 00:18:02,971
Let's unpack this one, because
this is the human element
545
00:18:03,191 --> 00:18:05,101
which makes this so difficult.
546
00:18:05,131 --> 00:18:07,341
I would argue for a second
that there's probably a lot
547
00:18:07,342 --> 00:18:11,191
of other aspects of this pivot
that an existing instantiated
548
00:18:11,221 --> 00:18:13,052
company can kind of figure out.
549
00:18:13,482 --> 00:18:17,082
This one has no, no winner,
because this just involves
550
00:18:17,092 --> 00:18:20,531
people that worked so hard
to build this thing no longer
551
00:18:20,541 --> 00:18:23,851
having a place, but even
worse- Yeah Essentially,
552
00:18:23,851 --> 00:18:26,422
in some cases, asking them
to dig their own grave.
553
00:18:26,432 --> 00:18:26,452
Yeah.
554
00:18:26,992 --> 00:18:29,812
Let's say that you've got a
20-person customer support,
555
00:18:29,812 --> 00:18:32,162
customer success team, and
you say, "Hey, we gotta
556
00:18:32,162 --> 00:18:34,631
think like a startup. With
AI, we could probably do the
557
00:18:34,631 --> 00:18:37,011
same thing we're doing with
20 with two people." Yeah.
558
00:18:37,411 --> 00:18:38,051
Okay.
559
00:18:38,361 --> 00:18:39,481
Write the playbook for us.
560
00:18:39,532 --> 00:18:42,621
Like- Yeah … I guess
we start with a shovel.
561
00:18:42,621 --> 00:18:44,942
We dig the hole about six
foot deep, then I jump in it.
562
00:18:44,961 --> 00:18:47,351
You pelt me with rocks, and
it's g- day over, right?
563
00:18:47,361 --> 00:18:47,851
Like, yeah.
564
00:18:48,081 --> 00:18:50,481
Like, how does that
conversation go?
565
00:18:50,571 --> 00:18:54,061
And I say this with reverence,
the ultimate protected
566
00:18:54,061 --> 00:18:56,152
class, the engineers, right?
567
00:18:56,152 --> 00:18:56,182
Yeah.
568
00:18:56,182 --> 00:19:01,232
The engineers have enjoyed
a period of magical
569
00:19:01,391 --> 00:19:02,141
unpredictability, right?
570
00:19:02,161 --> 00:19:04,412
Like- Yep … if you've been
an engineer in the software
571
00:19:04,412 --> 00:19:07,921
business in the last 30
years, life has been pretty
572
00:19:07,921 --> 00:19:09,991
good as far as job security.
573
00:19:10,531 --> 00:19:13,782
And now we go to what's always
the highest line item, which
574
00:19:13,782 --> 00:19:16,391
are the engineers, which
see job security, right?
575
00:19:16,841 --> 00:19:18,281
And we say, "Hey,
good news, guys.
576
00:19:18,471 --> 00:19:21,671
We're gonna build 10X more with
10X less people." If you're
577
00:19:21,671 --> 00:19:25,531
the engineers, and your job
historically has essentially
578
00:19:25,531 --> 00:19:27,941
been the gatekeeper of what
gets built, right, which is
579
00:19:27,941 --> 00:19:32,422
a very powerful role, and the
CMO who, you know, who, who
580
00:19:32,441 --> 00:19:35,522
engages you on the marketing
side and the CEO, the director
581
00:19:35,532 --> 00:19:37,951
of product, you know, all these
different roles, have always
582
00:19:38,081 --> 00:19:43,302
basically had to rely on you
and your team to be able to
583
00:19:43,302 --> 00:19:46,941
get stuff done, whether it was,
you know, uh, product designs,
584
00:19:46,941 --> 00:19:50,792
whether, whatever, and all of a
sudden you're not as important
585
00:19:50,792 --> 00:19:51,991
as you were five minutes ago.
586
00:19:52,321 --> 00:19:52,731
Mm-hmm.
587
00:19:52,751 --> 00:19:53,651
Here, here's where
I'm going with this.
588
00:19:54,111 --> 00:19:56,701
Your first thought isn't
going to be, "You're right.
589
00:19:56,711 --> 00:19:59,291
Burn it all down. Let me get
rid of, uh, two-thirds of my
590
00:19:59,291 --> 00:20:01,981
staff and push all decisioning
to somebody but me." Yeah.
591
00:20:02,202 --> 00:20:03,551
No one is going to say that.
592
00:20:03,551 --> 00:20:04,711
No one wants to do that, no.
593
00:20:04,711 --> 00:20:05,161
Right?
594
00:20:05,301 --> 00:20:07,541
And so again, this is what
this episode's all about.
595
00:20:08,191 --> 00:20:11,751
As leadership, you've
gotta reset all these folks
596
00:20:12,062 --> 00:20:13,502
who don't wanna be reset.
597
00:20:14,126 --> 00:20:15,976
That's, I think that's gonna be
one of the most challenging part
598
00:20:15,976 --> 00:20:19,916
of this because, look, we built
these companies on a giant stack
599
00:20:19,926 --> 00:20:22,229
of assumptions, that these are
the roles we need- Yep … this
600
00:20:22,229 --> 00:20:24,336
is what they produce, this
is what they cost, and all
601
00:20:24,336 --> 00:20:26,335
of that was settled, right?
602
00:20:26,345 --> 00:20:28,995
Now, all of a sudden, not only
is that not settled, it's pretty
603
00:20:28,995 --> 00:20:29,966
obvious that it's different.
604
00:20:29,966 --> 00:20:31,735
And let's go back to the
competitive angle of this.
605
00:20:32,015 --> 00:20:34,405
Because even if you're like,
"Look, we'll just try to
606
00:20:34,405 --> 00:20:36,175
make this work. We'll just
keep chugging along," you're
607
00:20:36,245 --> 00:20:38,436
doing it with 100, they
come along and they're doing
608
00:20:38,436 --> 00:20:40,436
it with 10, maybe fewer.
609
00:20:40,835 --> 00:20:42,266
That's a big problem,
and there's nothing
610
00:20:42,266 --> 00:20:43,295
cool about that, right?
611
00:20:43,296 --> 00:20:44,656
Because it does, it
means cutting back.
612
00:20:44,665 --> 00:20:46,765
It, it means good people,
generally good people,
613
00:20:46,765 --> 00:20:49,686
get to- Yeah … get this
place for reasons that have
614
00:20:49,686 --> 00:20:52,306
nothing to do with whether
they were good or not.
615
00:20:52,435 --> 00:20:53,046
Not their fault.
616
00:20:53,065 --> 00:20:54,926
I mean, literally not
their fault, right?
617
00:20:55,036 --> 00:20:55,606
It's brutal.
618
00:20:55,885 --> 00:20:56,895
And- But it doesn't
change the math.
619
00:20:57,536 --> 00:20:57,833
That's the problem.
620
00:20:57,833 --> 00:20:58,415
It doesn't change the math.
621
00:20:58,576 --> 00:20:59,015
That's the problem.
622
00:20:59,015 --> 00:21:00,935
To survive, you have to think
like a startup that launched
623
00:21:00,935 --> 00:21:03,605
this morning, and because
that's exactly who you're
624
00:21:03,606 --> 00:21:04,675
gonna be competing with, right?
625
00:21:04,675 --> 00:21:06,855
There's somebody else that
started yesterday who's now
626
00:21:06,865 --> 00:21:11,835
nearly where you are after 15
years, because they can just do
627
00:21:12,056 --> 00:21:14,036
everything that you did in such
a short period of time under
628
00:21:14,036 --> 00:21:15,835
such little cost constraint.
629
00:21:16,165 --> 00:21:18,165
We have to rethink the
org chart completely.
630
00:21:18,435 --> 00:21:19,785
Let me do a little
side quest here.
631
00:21:20,096 --> 00:21:22,815
We did an episode years
and years a- ago where we
632
00:21:22,815 --> 00:21:25,176
talked about when small
companies think about
633
00:21:25,176 --> 00:21:26,355
competing with big companies.
634
00:21:26,365 --> 00:21:27,965
Mm. And we talked about
it like Luke Skywalker
635
00:21:28,026 --> 00:21:28,676
taking on the Death Star.
636
00:21:28,696 --> 00:21:28,966
Yeah.
637
00:21:29,015 --> 00:21:29,925
You finding that, that- Yep
638
00:21:29,925 --> 00:21:32,035
that one, you know, chink
in the armor, so to speak.
639
00:21:32,346 --> 00:21:34,195
I- in that episode, what we
said is, you know, we don't
640
00:21:34,196 --> 00:21:36,906
fear big competitors because we
know they're slow and whatever.
641
00:21:36,906 --> 00:21:38,855
Like, when that Death Star
finally turns and that
642
00:21:38,855 --> 00:21:40,895
thing fires up and- Yeah,
yeah … uh, launches on,
643
00:21:40,925 --> 00:21:42,546
on Alderaan, uh, game over.
644
00:21:42,556 --> 00:21:42,586
Right.
645
00:21:42,675 --> 00:21:43,735
But until then- Yeah
646
00:21:43,955 --> 00:21:45,215
they are very vulnerable.
647
00:21:45,645 --> 00:21:47,495
I want, for those folks that
are listening that aren't part
648
00:21:47,495 --> 00:21:49,925
of big organizations but are
about to compete with them, I
649
00:21:49,925 --> 00:21:52,895
want you to think about what
we're saying very differently.
650
00:21:53,385 --> 00:21:55,855
I want you to think when
you go after big co-
651
00:21:56,634 --> 00:21:58,914
This is the problem that
they have to deal with.
652
00:21:58,954 --> 00:22:01,863
This is the big, uh,
storeroom they have for all
653
00:22:01,863 --> 00:22:04,843
of their, their firearms
that if you're similar to,
654
00:22:04,843 --> 00:22:05,833
similar to the Death Star.
655
00:22:05,963 --> 00:22:07,823
If you just- Yeah … if
you just land on that, this
656
00:22:07,823 --> 00:22:08,863
whole thing is gonna explode.
657
00:22:09,283 --> 00:22:13,363
If I'm about to compete with
Big Co., and I know that in
658
00:22:13,404 --> 00:22:17,083
order for them to do what I do,
they have to be a fraction of
659
00:22:17,083 --> 00:22:20,404
the size because I can sell,
right, I can sell stuff for
660
00:22:20,404 --> 00:22:23,244
a dollar that they used to
have to sell for $100, right?
661
00:22:23,244 --> 00:22:25,543
So in order for them to- Yeah
… to stay competitive, they
662
00:22:25,543 --> 00:22:26,803
can't have all those people.
663
00:22:27,173 --> 00:22:30,384
So I know when I'm competing
with them, that the
664
00:22:30,393 --> 00:22:32,924
consternation that it's
gonna take, that their first
665
00:22:33,014 --> 00:22:35,993
reaction is gonna be to try
to protect all those people
666
00:22:35,994 --> 00:22:38,293
and preserve- Yeah … that
capital structure, right?
667
00:22:38,293 --> 00:22:38,563
Yep.
668
00:22:38,733 --> 00:22:39,643
That's the big problem, right?
669
00:22:39,643 --> 00:22:42,313
'Cause the competitor's
doing it with 10, not because
670
00:22:42,313 --> 00:22:43,533
they're smarter than you.
671
00:22:43,703 --> 00:22:46,333
They just started after the
reset, so they never hired the
672
00:22:46,333 --> 00:22:47,904
other 90 in the first place.
673
00:22:47,913 --> 00:22:47,933
Yeah.
674
00:22:47,953 --> 00:22:49,513
They don't have to
solve that problem.
675
00:22:49,713 --> 00:22:49,973
Correct.
676
00:22:50,133 --> 00:22:51,473
They just have to solve the
problem of how do we build it.
677
00:22:51,573 --> 00:22:53,683
We have to solve the problem
of how do we build and
678
00:22:53,683 --> 00:22:55,223
how do we keep everybody
whole while we're doing it.
679
00:22:55,453 --> 00:22:57,674
So my side quest there
was just letting folks
680
00:22:57,674 --> 00:22:59,403
know that, you know, kinda
getting to this game that
681
00:22:59,413 --> 00:23:00,863
are these nimble competitors.
682
00:23:01,133 --> 00:23:03,763
What you're up against
isn't just, hey, this
683
00:23:03,763 --> 00:23:04,743
is a bigger company.
684
00:23:05,053 --> 00:23:08,574
You are up against a company
that internally has a
685
00:23:08,623 --> 00:23:10,433
time bomb ticking, right?
686
00:23:10,574 --> 00:23:13,103
I will say this 'cause a
lot of people haven't seen
687
00:23:13,104 --> 00:23:15,233
the in- inner workings of,
of enough big companies.
688
00:23:15,714 --> 00:23:18,113
When a company gets up to a
certain size, and there's no
689
00:23:18,123 --> 00:23:20,614
magic number, but it could be
100 people, it could be 500
690
00:23:20,633 --> 00:23:23,984
people, et cetera, the focus of
all the people that work there
691
00:23:24,163 --> 00:23:25,643
no longer becomes external.
692
00:23:25,953 --> 00:23:27,833
It becomes entirely internal.
693
00:23:27,843 --> 00:23:28,053
Yeah, yeah.
694
00:23:28,053 --> 00:23:30,813
Your success within the
company has everything to do
695
00:23:30,813 --> 00:23:33,714
with what you do within that
company, the politics and
696
00:23:33,714 --> 00:23:34,683
everything else like that.
697
00:23:35,153 --> 00:23:37,463
The external success, like
how well the product does
698
00:23:37,464 --> 00:23:41,614
in the market, kinda becomes
nobody's personal benefit.
699
00:23:41,843 --> 00:23:44,763
But the internal, how well
your company did, how well you
700
00:23:45,034 --> 00:23:48,033
promoted people, et cetera,
becomes how you make more money.
701
00:23:48,293 --> 00:23:52,176
My point is- For startups,
the small ones, they can just
702
00:23:52,176 --> 00:23:54,186
focus on how many customers
are we selling, like how does
703
00:23:54,186 --> 00:23:55,265
this benefit us directly?
704
00:23:55,636 --> 00:23:55,656
Yeah.
705
00:23:55,846 --> 00:23:59,136
But the people you're competing
with, the actual humans behind
706
00:23:59,146 --> 00:24:02,336
big logo, are just worried about
their own frigging jobs, man.
707
00:24:02,485 --> 00:24:05,206
They're just worried about
updating their LinkedIn, right?
708
00:24:05,206 --> 00:24:06,866
And making sure that they,
they, they don't lose
709
00:24:06,866 --> 00:24:07,585
pay on their mortgage.
710
00:24:07,586 --> 00:24:11,255
So a lot of very vulnerable
big logos right now.
711
00:24:11,646 --> 00:24:12,805
Um, and it's- Super … I
think it's important
712
00:24:12,806 --> 00:24:13,436
to understand that.
713
00:24:13,796 --> 00:24:14,206
Super.
714
00:24:14,206 --> 00:24:16,805
And, and, like, I think the
stress this time is a bit
715
00:24:16,806 --> 00:24:19,125
different and, and it, it's
pervasive through these
716
00:24:19,126 --> 00:24:22,355
organizations because it's not
just about like, "Oh, something
717
00:24:22,355 --> 00:24:25,425
is happening to us that's going
to make us have to change,
718
00:24:25,705 --> 00:24:27,285
and we're gonna have to lay
people off, or we're gonna
719
00:24:27,285 --> 00:24:28,805
have to fire people, we're
gonna have to change things."
720
00:24:29,346 --> 00:24:31,135
In the past, there were
always jobs for those
721
00:24:31,135 --> 00:24:32,275
people to go to, right?
722
00:24:32,275 --> 00:24:32,286
Yeah.
723
00:24:32,286 --> 00:24:34,745
Now you're saying like, "The
job doesn't exist at our company
724
00:24:34,745 --> 00:24:38,445
anymore, nor the 15 other big
competitors you would've gone to
725
00:24:38,475 --> 00:24:41,546
historically to fill that role,
to fill that need in your own
726
00:24:41,546 --> 00:24:44,330
life." And so I think the stress
and the pressure and the angst
727
00:24:44,330 --> 00:24:46,925
and the anxiety is significantly
higher this time around.
728
00:24:47,085 --> 00:24:47,465
It is.
729
00:24:47,465 --> 00:24:50,095
And, and look, I genuinely
believe, and, and time will
730
00:24:50,095 --> 00:24:52,345
tell, but I genuinely believe
that, that this will also
731
00:24:52,345 --> 00:24:54,125
create more new companies,
which will then become-
732
00:24:54,125 --> 00:24:55,115
100% … you know, another.
733
00:24:55,296 --> 00:24:56,105
But they ain't there yet.
734
00:24:56,146 --> 00:24:57,906
That's a, an opportunity
for later, but it's
735
00:24:57,906 --> 00:24:58,795
a problem for now.
736
00:24:59,046 --> 00:25:01,936
So what we end up having to
do as, as, as founders, as
737
00:25:01,955 --> 00:25:05,535
leadership, is a hard reset,
a straight up hard reset.
738
00:25:05,555 --> 00:25:09,576
And I think most leadership,
most founders, most CEOs,
739
00:25:09,756 --> 00:25:11,516
haven't gotten the message yet.
740
00:25:11,686 --> 00:25:13,685
They know the storm's
coming, they can feel it.
741
00:25:13,705 --> 00:25:13,725
Yeah.
742
00:25:13,726 --> 00:25:14,396
They're smart.
743
00:25:14,705 --> 00:25:17,285
Ryan, I don't think
they actually appreciate
744
00:25:17,506 --> 00:25:19,435
how much things have to
change, 'cause it's hard.
745
00:25:19,686 --> 00:25:20,405
I think it's hard.
746
00:25:20,405 --> 00:25:20,415
Mm-hmm.
747
00:25:20,415 --> 00:25:22,645
I think, I think they
maybe do understand it.
748
00:25:22,716 --> 00:25:24,646
They've intellectualized
it, they know, and they
749
00:25:24,646 --> 00:25:25,565
just can't do it yet.
750
00:25:25,585 --> 00:25:27,775
And, and it's this…
This is gonna be harsh.
751
00:25:27,775 --> 00:25:29,655
I'm gonna, I'll try to say it as
kindly as I can, but it's harsh.
752
00:25:29,756 --> 00:25:32,385
It's sense of loyalty to
the old org chart, right?
753
00:25:32,385 --> 00:25:32,396
Yeah.
754
00:25:32,396 --> 00:25:34,405
And unfortunately- Yeah
… loyalty to the old org chart
755
00:25:34,415 --> 00:25:36,815
is not actually loyalty to
your people, because at some
756
00:25:36,815 --> 00:25:39,585
point, it's actually the
fastest way to lose all of them.
757
00:25:39,725 --> 00:25:39,835
Yeah.
758
00:25:39,835 --> 00:25:41,925
Because a company that doesn't
adapt- It sucks … doesn't
759
00:25:41,925 --> 00:25:42,725
get to keep anybody.
760
00:25:42,885 --> 00:25:43,315
It sucks.
761
00:25:43,315 --> 00:25:43,575
Right?
762
00:25:43,575 --> 00:25:46,575
And, and the hard reset is sort
of the humane option compared
763
00:25:46,576 --> 00:25:48,185
to just going under, right?
764
00:25:48,186 --> 00:25:50,015
Because that's the other
choice, and it sucks.
765
00:25:50,025 --> 00:25:50,045
Yeah.
766
00:25:50,245 --> 00:25:53,635
There is no fun way
around this, right?
767
00:25:53,675 --> 00:25:56,595
And we're conditioned to
exactly the opposite, right?
768
00:25:56,595 --> 00:25:58,635
We used to fight over head
count in budget meetings like
769
00:25:58,635 --> 00:26:00,006
it was a status symbol, right?
770
00:26:00,155 --> 00:26:02,245
We were trying to get as many
people as we could, right?
771
00:26:02,245 --> 00:26:03,795
It turns out we were
collecting liabilities
772
00:26:03,795 --> 00:26:04,845
and calling them trophies.
773
00:26:04,875 --> 00:26:04,895
Yeah.
774
00:26:04,905 --> 00:26:09,615
In this world, doesn't change
what has to just happen now,
775
00:26:09,735 --> 00:26:11,245
and it's awful and it's hard.
776
00:26:11,506 --> 00:26:13,485
Part of that hard reset, of
course, is people, right?
777
00:26:13,485 --> 00:26:15,655
And w- you know, we've- Yep
… we've definitely covered that.
778
00:26:15,896 --> 00:26:17,905
Let's talk about the other
side of it, which is the,
779
00:26:18,135 --> 00:26:21,705
not what's changed, what's
broken, what's lost, but how
780
00:26:21,705 --> 00:26:26,015
do we rethink who our business
even is in this new era?
781
00:26:26,015 --> 00:26:26,125
Yeah.
782
00:26:26,336 --> 00:26:27,405
Okay, so let's go this way.
783
00:26:27,735 --> 00:26:31,096
If we said five minutes ago that
our business was virtual.com
784
00:26:31,226 --> 00:26:33,195
and we're a virtual assistant
business, we have hundreds
785
00:26:33,196 --> 00:26:35,265
of virtual assistants that
people can pay for monthly.
786
00:26:35,545 --> 00:26:38,975
But the hard pivot is no
more virtual assistants.
787
00:26:39,146 --> 00:26:41,985
Now, again- Yeah … we covered
the people aspect of it,
788
00:26:41,985 --> 00:26:43,655
so, so we're not overlooking
the people aspect of it.
789
00:26:43,665 --> 00:26:46,666
We're saying, but even if you
had some way to contend with
790
00:26:46,666 --> 00:26:51,080
that- You still, the biggest
part of this reset is you
791
00:26:51,080 --> 00:26:54,550
have to stop thinking about
how you used to make money.
792
00:26:54,560 --> 00:26:54,580
Yeah.
793
00:26:54,870 --> 00:26:56,320
It doesn't matter anymore.
794
00:26:56,750 --> 00:26:57,110
Right.
795
00:26:57,240 --> 00:26:58,750
And that's the hard part.
796
00:26:59,090 --> 00:27:00,470
Everyone's trying to
protect their stuff.
797
00:27:00,680 --> 00:27:02,119
They're trying to say-
Yeah … "Hey, let's just not
798
00:27:02,120 --> 00:27:05,329
make this change." And it's
like, dude, the people that
799
00:27:05,329 --> 00:27:08,319
are gonna win aren't the people
that protected their stuff.
800
00:27:08,740 --> 00:27:09,090
No, man.
801
00:27:09,090 --> 00:27:11,549
It's the people that set
it on fire, I hate to even
802
00:27:11,550 --> 00:27:13,999
say it, literally what it's
called, and restart it.
803
00:27:14,609 --> 00:27:16,190
Which is why we're saying
you gotta start again.
804
00:27:16,599 --> 00:27:19,399
I think we're seeing a lot of
people in a position now where
805
00:27:19,409 --> 00:27:21,910
they're protecting their current
business model, and that's in
806
00:27:21,910 --> 00:27:24,999
direct conflict- Right … with
the business model that would
807
00:27:24,999 --> 00:27:26,269
win in the next five years.
808
00:27:26,319 --> 00:27:26,589
Right.
809
00:27:26,619 --> 00:27:27,879
The model loses, right?
810
00:27:27,920 --> 00:27:29,519
The, if that's the game
you're playing right now,
811
00:27:29,519 --> 00:27:30,499
you're already losing.
812
00:27:30,499 --> 00:27:32,810
The only choice is whether you
cannibalize yourself on purpose
813
00:27:32,810 --> 00:27:35,859
or let someone with nothing to
protect do it for you, right?
814
00:27:35,869 --> 00:27:35,949
Yes.
815
00:27:36,119 --> 00:27:37,979
You've either gotta eat
some of yourself or somebody
816
00:27:37,979 --> 00:27:38,690
else is gonna do it.
817
00:27:38,919 --> 00:27:39,590
Here's a great test.
818
00:27:39,590 --> 00:27:40,770
One way or the other.
819
00:27:40,770 --> 00:27:44,549
Ask yourself as a founder,
if you were entering your
820
00:27:44,549 --> 00:27:47,159
business, your industry, you
know, whatever you're in right
821
00:27:47,159 --> 00:27:50,539
now, would your business plan
look to build exactly the
822
00:27:50,540 --> 00:27:51,989
product that you have right now?
823
00:27:52,290 --> 00:27:55,019
Like- Yeah … for most
people, I can't fathom that
824
00:27:55,029 --> 00:27:56,310
that would be true, right?
825
00:27:56,319 --> 00:27:58,289
So- Yeah … if, if you
were saying, "Hey, I'm gonna
826
00:27:58,290 --> 00:28:01,169
go back to startup mode,"
you would build something
827
00:28:01,190 --> 00:28:03,799
so geometrically different
than what you have now.
828
00:28:03,799 --> 00:28:03,964
Yes.
829
00:28:03,964 --> 00:28:06,389
And the only reason you're
building what you have the way
830
00:28:06,389 --> 00:28:10,349
you are now is because of the
liability of what you have now.
831
00:28:10,349 --> 00:28:10,870
Right.
832
00:28:10,870 --> 00:28:14,354
And what sucks is- Five
seconds ago, that was your
833
00:28:14,354 --> 00:28:15,414
greatest accomplishment.
834
00:28:15,544 --> 00:28:17,324
The concept- Yeah … that
it was a liability?
835
00:28:17,934 --> 00:28:19,034
Like, I'll give you an example.
836
00:28:19,454 --> 00:28:23,064
I don't know him well, but
Dharmesh Shah, the, the founder
837
00:28:23,064 --> 00:28:25,224
of HubSpot- Yeah … and I
have had a good relationship,
838
00:28:25,243 --> 00:28:27,574
you know, just for a long
time, uh, for s- long s-
839
00:28:27,724 --> 00:28:29,313
since before, uh, HubSpot.
840
00:28:29,313 --> 00:28:33,234
And, and a few weeks
ago, Dharmesh p- posted
841
00:28:33,234 --> 00:28:35,093
something on LinkedIn that
I just, I haven't been able
842
00:28:35,093 --> 00:28:35,884
to stop thinking about.
843
00:28:36,294 --> 00:28:39,133
He posts something to the effect
of, I don't… You can look
844
00:28:39,134 --> 00:28:41,703
it up, but, uh, uh, the effect
of, "Hey, I just bought a bunch
845
00:28:41,703 --> 00:28:44,854
of HubSpot stock," because
the, the stock took a header.
846
00:28:44,854 --> 00:28:45,203
Yeah, yeah.
847
00:28:45,363 --> 00:28:47,844
Because the analysts are all
saying that, you know, our days
848
00:28:47,844 --> 00:28:49,633
are numbered, and, you know,
SaaS is getting blown up, and
849
00:28:49,633 --> 00:28:50,544
everything else like that.
850
00:28:50,553 --> 00:28:50,573
Yeah.
851
00:28:51,033 --> 00:28:53,903
And he's saying, "But I don't
believe that hype. Yes, I'm well
852
00:28:53,904 --> 00:28:54,973
aware…" He's such a smart guy.
853
00:28:55,343 --> 00:28:57,953
"I'm well aware of what's
happening, but here's why
854
00:28:57,963 --> 00:28:59,843
I think HubSpot is in a
phenomenal position to
855
00:28:59,843 --> 00:29:00,633
do something about it."
856
00:29:01,163 --> 00:29:02,023
Here's why I bring this up.
857
00:29:02,654 --> 00:29:06,284
I wonder if Dharmesh, behind
closed doors, if I were to say,
858
00:29:06,334 --> 00:29:09,794
"Dharmesh, if you were Dharmesh
from 20 years ago and you were
859
00:29:09,794 --> 00:29:12,303
starting over- Yeah … would
you build exactly what you
860
00:29:12,303 --> 00:29:15,443
have now?" I can't imagine,
an amazing amount of respect
861
00:29:15,443 --> 00:29:17,184
for him, he would say yes.
862
00:29:17,373 --> 00:29:19,324
Maybe, but I mean, I,
again, I can't put words
863
00:29:19,324 --> 00:29:22,443
in his mouth, but I use him
specifically for a few reasons.
864
00:29:22,674 --> 00:29:25,693
One, because what he's
built has been phenomenal.
865
00:29:25,763 --> 00:29:27,663
I mean, an absolute- Yeah
… juggernaut at every level.
866
00:29:27,703 --> 00:29:27,873
Yep.
867
00:29:28,144 --> 00:29:30,823
Second, he's so smart, right?
868
00:29:30,823 --> 00:29:32,574
I mean, just like-
Right … just absolute.
869
00:29:33,013 --> 00:29:35,433
And third, he's in
front of the curve.
870
00:29:35,663 --> 00:29:37,343
Like, like, this guy
isn't like some guy who's
871
00:29:37,343 --> 00:29:38,944
like, you know, we, we
should put out to pasture.
872
00:29:39,113 --> 00:29:40,333
Like, dude is on his grind.
873
00:29:40,833 --> 00:29:41,744
Uh, he's at the front of it.
874
00:29:42,073 --> 00:29:44,643
And I wonder when he sits,
you know, staring at the
875
00:29:44,643 --> 00:29:47,944
ceiling at night, if he's
like, "Shit, I'm in trouble,
876
00:29:47,944 --> 00:29:52,056
man." Like, I- What I built,
which made me a billionaire,
877
00:29:52,486 --> 00:29:55,776
is now a massive anchor, and
I'm smart enough to know what
878
00:29:55,776 --> 00:29:57,396
to build next, and I can't.
879
00:29:57,406 --> 00:29:57,426
Yeah.
880
00:29:57,736 --> 00:29:58,276
I can't.
881
00:29:58,346 --> 00:29:58,616
Yeah.
882
00:29:58,706 --> 00:30:00,296
And that's the
interesting thing, right?
883
00:30:00,296 --> 00:30:02,566
And I, I started wondering
about that actually when he
884
00:30:02,566 --> 00:30:04,755
started building some of these
little side quest projects.
885
00:30:04,766 --> 00:30:05,025
Yeah, yep.
886
00:30:05,286 --> 00:30:05,526
Right?
887
00:30:05,556 --> 00:30:07,766
Like the, the little agentic
company and some other stuff,
888
00:30:07,775 --> 00:30:12,735
and it was like, to me, those
looked exactly like, this is
889
00:30:12,736 --> 00:30:15,375
what we should be building,
but we can't because we're too
890
00:30:15,375 --> 00:30:17,365
big inside HubSpot, so we're
gonna go build them out here.
891
00:30:17,365 --> 00:30:18,055
I'm gonna go do it over here.
892
00:30:18,056 --> 00:30:18,705
I'm gonna go do it over there.
893
00:30:18,896 --> 00:30:20,946
To me, that was exactly
what those looked like.
894
00:30:21,175 --> 00:30:22,096
This is what I'm saying.
895
00:30:22,096 --> 00:30:25,616
This is, is a perfect
example of someone who can
896
00:30:25,625 --> 00:30:28,265
see what's next- Yep … but
their hands are tied.
897
00:30:28,295 --> 00:30:30,926
Their economics don't
allow them to do it.
898
00:30:31,276 --> 00:30:34,095
Now- Yep … again, I have
complete faith in Dharmesh.
899
00:30:34,125 --> 00:30:37,166
I'm sure he's gonna find a way
to do something, even if it
900
00:30:37,166 --> 00:30:39,206
means building HubSpot 2, right?
901
00:30:39,206 --> 00:30:40,715
And that becomes the new
thing, and- Yeah … and
902
00:30:40,715 --> 00:30:43,196
people, you know, float out
of HubSpot 1 to HubSpot 2.
903
00:30:43,445 --> 00:30:45,546
I'm confident someone like
him can figure it out.
904
00:30:45,785 --> 00:30:50,365
But I use him because even
he has this, this problem,
905
00:30:50,495 --> 00:30:51,585
and dude's smart as hell.
906
00:30:51,725 --> 00:30:53,736
The problem isn't about
how smart the founder is.
907
00:30:53,736 --> 00:30:55,355
I'm using him
because he's so good.
908
00:30:55,866 --> 00:30:58,235
The- Yeah … problem is
with the dead weight that
909
00:30:58,245 --> 00:31:00,576
he's carrying- Yeah, yeah
… which, my point of this,
910
00:31:00,836 --> 00:31:02,526
was his greatest success.
911
00:31:03,035 --> 00:31:03,535
Bananas.
912
00:31:03,945 --> 00:31:04,245
Yeah.
913
00:31:04,265 --> 00:31:06,436
The very thing that you set
out to build, the very thing
914
00:31:06,436 --> 00:31:10,965
that you use to measure success
becomes a massive liability
915
00:31:11,025 --> 00:31:12,885
in, in this new world.
916
00:31:12,936 --> 00:31:14,586
Yeah, it's absolutely wild.
917
00:31:14,896 --> 00:31:17,005
It's a lot to just
intellectualize, right?
918
00:31:17,006 --> 00:31:18,505
Forget about actually
doing something about it.
919
00:31:18,506 --> 00:31:20,785
You gotta spend a fair
amount of time just going,
920
00:31:21,025 --> 00:31:23,005
"What the fuck?" Right?
921
00:31:23,006 --> 00:31:24,775
Okay, not, not even what
am I gonna do about this.
922
00:31:24,875 --> 00:31:24,955
Yeah.
923
00:31:24,955 --> 00:31:27,015
Just like, what just happened?
924
00:31:27,025 --> 00:31:28,085
Like, huh?
925
00:31:28,195 --> 00:31:28,515
Huh?
926
00:31:28,565 --> 00:31:29,055
Yeah, right.
927
00:31:29,055 --> 00:31:31,145
How can they just change
the rules that fast?
928
00:31:31,165 --> 00:31:32,936
Like, don't, do, do they knock?
929
00:31:32,936 --> 00:31:33,985
Do they send a notice?
930
00:31:33,985 --> 00:31:35,495
Do we get, like,
30 days, something?
931
00:31:35,616 --> 00:31:35,986
Nope.
932
00:31:36,175 --> 00:31:40,535
And what's interesting in his
case is that he is the guy that
933
00:31:40,535 --> 00:31:41,945
does the disrupting, right?
934
00:31:41,975 --> 00:31:44,505
I mean, HubSpot was a juggernaut
at every possible level.
935
00:31:44,506 --> 00:31:45,745
You know, w- w-
uh, we're a client.
936
00:31:46,045 --> 00:31:49,785
But we look at that bill every
month, and it's a big ass bill.
937
00:31:49,795 --> 00:31:49,815
Yeah.
938
00:31:50,195 --> 00:31:50,855
And we're like,
939
00:31:52,875 --> 00:31:53,145
"Hmm.
940
00:31:53,195 --> 00:31:55,615
How do we make that a, a not
big ass bill?" So next HubSpot
941
00:31:55,855 --> 00:31:59,445
that comes along, when Dharmesh
2 comes along, right, and he's
942
00:31:59,445 --> 00:32:01,975
like, "Hey, I can do that, the
same thing for 10% of the cost,"
943
00:32:02,705 --> 00:32:05,676
gonna be hard to say no, and
that's what he's dealing with.
944
00:32:05,676 --> 00:32:07,065
So now, here's where
it gets interesting.
945
00:32:07,436 --> 00:32:10,465
All of these founders, all
of us, have to go to these
946
00:32:10,805 --> 00:32:12,765
bold new frontiers, right?
947
00:32:12,765 --> 00:32:12,775
Yeah.
948
00:32:12,775 --> 00:32:16,515
Like, we basically have to
say, as painful as it is,
949
00:32:16,915 --> 00:32:19,955
we're being forced to restart
whether we like it or not,
950
00:32:20,535 --> 00:32:23,715
and we have to build our plan,
our strategy at this point.
951
00:32:24,440 --> 00:32:29,310
has to exist around ideas we've
never implemented before or were
952
00:32:29,310 --> 00:32:32,770
afraid to- Yep … around a cost
structure that never existed
953
00:32:32,779 --> 00:32:35,920
before, around, in some cases,
a market that doesn't exist yet.
954
00:32:35,930 --> 00:32:35,950
Yeah.
955
00:32:35,980 --> 00:32:37,870
Because again, we're building
things at a new rate that
956
00:32:37,880 --> 00:32:40,480
haven't, hasn't been proven-
Yep … in a competitive
957
00:32:40,489 --> 00:32:42,709
market that we cannot predict.
958
00:32:43,129 --> 00:32:43,269
Right.
959
00:32:43,270 --> 00:32:43,879
Holy shit.
960
00:32:44,430 --> 00:32:46,080
You know who does
really well with that?
961
00:32:46,629 --> 00:32:47,119
Startups.
962
00:32:47,709 --> 00:32:48,019
Startups.
963
00:32:48,389 --> 00:32:50,189
Yeah, it's so funny, man, like-
Startups do really well with
964
00:32:50,199 --> 00:32:52,679
that … when we look at it now,
it's like, you know, startup
965
00:32:52,709 --> 00:32:55,089
us had hope and no idea, right?
966
00:32:55,270 --> 00:32:55,300
Yep.
967
00:32:55,359 --> 00:32:57,739
Current us has a track
record and a mortgage.
968
00:32:57,979 --> 00:32:58,179
Yeah.
969
00:32:58,180 --> 00:33:00,640
And I'm honestly not sure
that like, yeah, we don't
970
00:33:00,640 --> 00:33:02,620
look at that and go, "Oh man,
it'd be so nice to be back in
971
00:33:02,620 --> 00:33:03,460
that condition again," right?
972
00:33:03,460 --> 00:33:05,580
Like, you worked- Well- … so
hard to get out of it, and it's
973
00:33:05,580 --> 00:33:07,250
like, can we have that back now?
974
00:33:07,489 --> 00:33:09,610
Can I just go back to
having nothing but ideas?
975
00:33:09,610 --> 00:33:11,249
Because it'd be
perfect right now.
976
00:33:11,340 --> 00:33:12,629
But here's what
I'm fascinated by.
977
00:33:12,649 --> 00:33:15,219
And you know, we're all
forced to relive this journey
978
00:33:15,219 --> 00:33:16,029
whether we want to or not.
979
00:33:16,029 --> 00:33:16,569
You know what it'd be like?
980
00:33:16,889 --> 00:33:20,569
It's like if every single
person in life had to go back
981
00:33:20,569 --> 00:33:21,729
to freshman year of high school.
982
00:33:21,790 --> 00:33:23,490
Like, for some reason- Yeah
… there was some alternate
983
00:33:23,500 --> 00:33:26,679
universe where the only way
to survive were to like, take
984
00:33:26,680 --> 00:33:30,369
our old ancient asses and
drag us back to freshman year.
985
00:33:30,369 --> 00:33:33,000
We're getting pushed in lockers
or… Dude, I'm so ready.
986
00:33:33,000 --> 00:33:34,450
I don't fit in a
locker anymore, bro.
987
00:33:34,460 --> 00:33:34,660
Yeah.
988
00:33:34,750 --> 00:33:37,109
Like, you, you can't
stuff me in there.
989
00:33:37,150 --> 00:33:39,579
Even if you oiled me up first,
I won't fit in a locker.
990
00:33:39,629 --> 00:33:40,929
But here's why I
use that analogy.
991
00:33:41,129 --> 00:33:44,210
I use that analogy because the
difference would be we know
992
00:33:44,210 --> 00:33:45,789
what to expect this time, right?
993
00:33:45,789 --> 00:33:45,849
Yeah.
994
00:33:45,849 --> 00:33:47,829
When we did it the first time,
you know, when you were in high
995
00:33:47,830 --> 00:33:49,499
school for the first time, you
didn't know what to expect.
996
00:33:49,500 --> 00:33:51,759
Everything was bigger than- Yeah
… it really was and et cetera.
997
00:33:52,059 --> 00:33:53,039
Uh, similar with the startup.
998
00:33:53,119 --> 00:33:55,420
We went in, everything was
more consequential than we
999
00:33:55,420 --> 00:33:56,419
thought it would be, et cetera.
1000
00:33:56,879 --> 00:34:00,239
At least this time around,
when we go to do it again,
1001
00:34:00,489 --> 00:34:02,290
we kind of know how to
operate as a startup.
1002
00:34:02,430 --> 00:34:04,139
Now, it doesn't mean
we're gonna be successful.
1003
00:34:04,379 --> 00:34:08,480
It just means that massive
gap of lack of experience
1004
00:34:08,669 --> 00:34:09,380
isn't there anymore.
1005
00:34:09,380 --> 00:34:09,599
Yeah.
1006
00:34:09,939 --> 00:34:11,019
But you know who
it is there for?
1007
00:34:11,419 --> 00:34:12,139
Our competitors.
1008
00:34:12,610 --> 00:34:15,209
See, right, when at
Startups.com, when we restart,
1009
00:34:15,500 --> 00:34:17,129
right, and we become, you
know, a startup again,
1010
00:34:17,129 --> 00:34:20,039
even after 15 years, we're
competing with people who've
1011
00:34:20,040 --> 00:34:20,879
never done this before.
1012
00:34:20,919 --> 00:34:22,659
By and large- Yeah … people
who've never done this before.
1013
00:34:22,669 --> 00:34:23,530
Their freshman effort.
1014
00:34:23,979 --> 00:34:25,569
And it doesn't mean
they're not capable.
1015
00:34:25,959 --> 00:34:27,719
It just means we're as
capable as they are.
1016
00:34:27,720 --> 00:34:29,049
The difference is we know
what the fuck we're doing.
1017
00:34:29,889 --> 00:34:29,999
Yeah.
1018
00:34:29,999 --> 00:34:31,839
Like, we know exactly- We get
to, we get to go back to play
1019
00:34:31,839 --> 00:34:33,860
the level one dungeon, but
we get to bring all of our
1020
00:34:33,860 --> 00:34:34,930
experience points- Exactly
1021
00:34:34,930 --> 00:34:36,990
and all the awesome loot
that we gathered across
1022
00:34:36,990 --> 00:34:37,619
all those adventures.
1023
00:34:37,620 --> 00:34:40,520
Like, I'm bringing the level
52 flaming sword with me.
1024
00:34:41,570 --> 00:34:41,711
That's what I'm saying.
1025
00:34:41,711 --> 00:34:42,750
I don't give a
shit what you say.
1026
00:34:43,779 --> 00:34:44,379
Exactly.
1027
00:34:44,790 --> 00:34:46,869
And so this is where
it gets fascinating.
1028
00:34:47,120 --> 00:34:49,179
While we've got this forced
reset and it's painful and
1029
00:34:49,180 --> 00:34:51,899
it's awful, and again, we, we
covered that plenty, we also
1030
00:34:51,900 --> 00:34:56,329
have this new world where we
have this unique experience and
1031
00:34:56,329 --> 00:34:59,469
an opportunity, right, at this
incredible, you know, wealth
1032
00:34:59,469 --> 00:35:02,589
creation engine to be able to
navigate this thing and hack
1033
00:35:02,590 --> 00:35:05,070
and slash and, and kind of, you
know, rebuild ourselves- Yep
1034
00:35:05,079 --> 00:35:06,250
in this new version.
1035
00:35:06,669 --> 00:35:08,949
I think that's incredibly
exciting, right?
1036
00:35:09,159 --> 00:35:10,840
Right, you and I, believe
it or not, aren't the
1037
00:35:10,840 --> 00:35:13,280
youngest guys, but- Yeah.
1038
00:35:13,770 --> 00:35:14,300
Go on.
1039
00:35:14,490 --> 00:35:15,820
Tell me more about this.
1040
00:35:15,990 --> 00:35:17,870
I know, man, I got an
awful lot of fight in me.
1041
00:35:18,010 --> 00:35:20,730
I am- Yeah … ready
to reload, right?
1042
00:35:20,760 --> 00:35:22,910
I am ready to go back
to that dungeon again.
1043
00:35:23,220 --> 00:35:24,510
Well, dude, do you know why?
1044
00:35:24,560 --> 00:35:26,790
Because energy just got
taken off the table.
1045
00:35:27,030 --> 00:35:27,259
Mm-hmm.
1046
00:35:27,270 --> 00:35:30,530
Because you no longer have to
survive all of that brutal,
1047
00:35:30,530 --> 00:35:32,449
like, build-up to the point
where we can afford the team,
1048
00:35:32,449 --> 00:35:34,170
where we can afford the stuff,
where we can do the thing.
1049
00:35:34,170 --> 00:35:35,639
Like- Yep … that's all gone.
1050
00:35:36,060 --> 00:35:36,250
Yep.
1051
00:35:36,259 --> 00:35:41,450
You don't have to have that just
keep rowing and keep rowing and
1052
00:35:41,450 --> 00:35:45,570
keep rowing and f- hopefully we
finally clear the wave break.
1053
00:35:45,649 --> 00:35:46,450
We don't have to
do that anymore.
1054
00:35:46,480 --> 00:35:47,389
We don't need-
Yep … the energy.
1055
00:35:47,390 --> 00:35:49,269
We need the experience,
we need the knowledge, we
1056
00:35:49,270 --> 00:35:51,589
need the desire, of course,
and we've always had that.
1057
00:35:51,590 --> 00:35:54,389
And so, like, I think by
taking that level of grind
1058
00:35:54,390 --> 00:35:56,039
and energy, not that they're
not gonna be a grind, but
1059
00:35:56,039 --> 00:35:57,039
y- you get where I'm going.
1060
00:35:57,070 --> 00:35:57,600
Like- Yeah
1061
00:35:57,609 --> 00:36:00,949
some of that just absolute
shit uphill- Yeah … is gone.
1062
00:36:00,949 --> 00:36:03,190
That's why the competitors
are just already right here.
1063
00:36:03,329 --> 00:36:03,529
Yep.
1064
00:36:03,539 --> 00:36:05,949
But yeah, man, I… Look, we've
never been afraid of a fight.
1065
00:36:05,980 --> 00:36:06,609
We're founders.
1066
00:36:09,879 --> 00:36:10,081
This is what we signed up for.
1067
00:36:10,081 --> 00:36:10,810
And so- That's it … like,
it feels like it's about
1068
00:36:10,810 --> 00:36:11,809
to be a lot of fun.
1069
00:36:12,070 --> 00:36:14,339
And yeah, there's gonna be some
major challenges to navigate,
1070
00:36:14,340 --> 00:36:16,960
the people problems being
really the only one that I don't
1071
00:36:16,960 --> 00:36:18,309
have awesome solutions for.
1072
00:36:18,430 --> 00:36:18,700
Yeah.
1073
00:36:18,919 --> 00:36:21,600
The rest of it I feel like we've
got, and just gotta figure out
1074
00:36:21,600 --> 00:36:22,610
how to make the rest of it work.
1075
00:36:22,790 --> 00:36:24,729
But the good news is, and
this is what I want folks
1076
00:36:24,729 --> 00:36:27,420
to take away from this, the
good news is the people that
1077
00:36:27,420 --> 00:36:30,099
are gonna survive this little
apocalypse- Yep … are
1078
00:36:30,140 --> 00:36:31,279
founders, are startups.
1079
00:36:31,279 --> 00:36:31,519
Yeah.
1080
00:36:31,739 --> 00:36:32,009
Right?
1081
00:36:32,140 --> 00:36:32,920
Which guess what?
1082
00:36:32,949 --> 00:36:36,489
It just so happens that's
exactly what we are, right?
1083
00:36:36,489 --> 00:36:38,010
Like, we were-
Yeah … literally made
1084
00:36:38,019 --> 00:36:41,119
to do this exact job at
this exact moment in time.
1085
00:36:41,349 --> 00:36:44,539
Now we're being dusted off and,
and getting the, the equipment
1086
00:36:44,549 --> 00:36:46,910
put back on us and pushed out in
the field whether we like it or
1087
00:36:46,910 --> 00:36:49,510
not, but- I'm gonna regrow hair
just for this adventure, Will.
1088
00:36:51,142 --> 00:36:51,692
I could have mine.
1089
00:36:52,162 --> 00:36:55,912
But this is also our
moment to prove that we are
1090
00:36:55,912 --> 00:36:56,972
the founder that we are.
1091
00:36:57,022 --> 00:36:58,242
And again, we've proved it once.
1092
00:36:58,242 --> 00:36:59,962
There's no reason we
can't do it again.
1093
00:36:59,972 --> 00:36:59,992
Yeah.
1094
00:37:00,302 --> 00:37:03,152
I think for a lot of folks
right now, there's so much
1095
00:37:03,162 --> 00:37:04,982
fear about what's happening,
you know, w- with these
1096
00:37:04,982 --> 00:37:07,282
existing organizations,
and it's justified.
1097
00:37:07,602 --> 00:37:10,752
But I think the difference
is if we step back and we
1098
00:37:10,752 --> 00:37:14,012
rethink about who we are when
we attack this problem, and
1099
00:37:14,012 --> 00:37:16,771
we say, "Let's stop thinking
about it as an existing company
1100
00:37:16,772 --> 00:37:17,932
that has these liabilities.
1101
00:37:18,112 --> 00:37:20,362
Let's start thinking about
it as a brand-new company, a
1102
00:37:20,372 --> 00:37:24,021
fresh company that is exactly
tailor-made for this type of
1103
00:37:24,022 --> 00:37:26,791
thing, led by people who have
done this before," then we
1104
00:37:26,792 --> 00:37:27,902
turn into something different.
1105
00:37:28,132 --> 00:37:30,371
We don't turn into the
big, slow Death Star.
1106
00:37:30,522 --> 00:37:32,642
We turn into the TIE fighter…
Or, I'm sorry, the, the
1107
00:37:32,761 --> 00:37:35,861
X-wing fighter that can fly-
Careful there, dark side.
1108
00:37:35,871 --> 00:37:35,891
Yeah.
1109
00:37:36,371 --> 00:37:37,731
I couldn't help but
go to the dark side.
1110
00:37:38,101 --> 00:37:41,822
Uh, we turn into this fast,
nimble, powerful thing with
1111
00:37:41,822 --> 00:37:43,571
a ton of experience, right?
1112
00:37:43,851 --> 00:37:46,812
And I think that is what's
gonna d- differentiate the
1113
00:37:46,821 --> 00:37:49,781
companies that languish
and get beat up from the
1114
00:37:49,781 --> 00:37:53,271
companies that absolutely
restart, reset, and kick ass.
1115
00:37:54,561 --> 00:37:56,171
Overthinking your startup
because you're going it alone?
1116
00:37:56,622 --> 00:37:58,412
You don't have to, and
honestly, you shouldn't.
1117
00:37:58,722 --> 00:38:01,332
Because instead, you can
learn directly from peers
1118
00:38:01,332 --> 00:38:02,502
who've been in your shoes.
1119
00:38:02,711 --> 00:38:05,042
Connect with bootstrap
founders and the advisors
1120
00:38:05,042 --> 00:38:07,471
helping them win in the
Startups.com community.
1121
00:38:07,641 --> 00:38:12,231
Check out the Startups.com
community at www.startups.com
1122
00:38:12,351 --> 00:38:13,271
to see if it's for you.
1123
00:38:13,531 --> 00:38:14,572
Could be just the
thing you need.
1124
00:38:14,821 --> 00:38:15,762
I hope to see you inside
